PayBreak, the U.K. FinTech focused on consumer finance, announced Tuesday (June 20) that it has completed a round of fundraising that resulted in it raising £24.5 million of equity.
According to a report in Finextra, citing the company, the fundraising round got a lot of support from existing shareholders but also included new investors as well. PayBreak was able to grow a lot in the last financial year, which increased interest in the company. PayBreak plans to use the fresh funding to grow the company further and to develop new products.
“This fundraising shows high confidence in our performance to date and expectations for the future,’’ said Julia Throop, the company’s managing director, in the report. Meanwhile Joost Schuijff, chairman of the company, also weighed in saying, “Consumer finance is a high-growth market, and our innovative finance products, resilient, highly scalable technology and operational expertise allow us to make considerable inroads into this market whilst upholding ethical, safe lending for our consumers.”
It’s not surprising that PayBreak had an easy go of it raising capital given there is a lot of interest in FinTech startups in the U.K.
Take Auto Service Finance, a FinTech startup that allows car buyers to divide payments between three interest-free monthly installments. Auto Service Finance saw its customer base grow by 100 percent from 300 to 600 dealerships and its revenue grow 1,000 percent.
In an interview this year with PYMNTS, the company’s founder and co-CEO James Jackson commented on the many benefits resulting from the company’s commitment to agility: “Providing payment alternatives when it comes to funding vehicle repairs and accessories, with no hidden charges, gives customers a transparent and flexible way of managing their motoring expenditure. By doing this, dealerships will see higher levels of customer satisfaction and loyalty.”