MarketFinance rides the embedded lending wave to boost revenue and profitability

By Joy Dumasia

MarketFinance, the leading FinTech payments and credit provider, announced an increase of 133% in revenue, which saw the business hit profitability in 2021 as it invests further in its embedded finance products and digital lending APIs. 

MarketFinance’s growth is driven by a surge in demand for working capital over the pandemic from SME borrowers, facilitated by the FinTech’s successful rollout of the government-backed Coronavirus Business Interruption Loan Scheme (CBILS) loans and its accreditation as a delivery partner of the Recovery Loan Scheme (RLS). Both schemes saw the company handle over £2.1 billion in digital applications with the fastest speed of decision in the market currently, 100% of applicants hear back in less than 24 hours. This growth has been achieved in tandem with the company’s moves to double down on existing strategic partnerships with Barclays Bank UK Plc and international cash management experts Ebury. MarketFinance is also launching new strategic partnerships with Azets, the largest Top 10 regional SME Accountancy and Business Advisory firm, and FTSE 250 enterprise merchants across various sectors. 

The FinTech saw a close to ten-fold increase in monthly borrowing applications since the pandemic and provided businesses with the quickest’ time to yes’ on the market via their digital application process. 2019’s £20 million-30 million volume in submitted monthly applications leapt to an average of £300 million per month through 2021, reaching £725 million in one month at its peak. Last year MarketFinance advanced over half a billion pounds across its product offering that spans invoice finance, business loans and flex loans, and approved credit limits worth £286 million. 

MarketFinance has provided frictionless finance to B2B businesses in partnership with blue chips, start-ups and public bodies alike for over a decade. The company has benefited greatly from its strong track record of successfully embedding lending services on a cross-sector basis, where MarketFinance’s lending product is integrated within Barclays Online Banking, enabling hundreds of millions of pounds in funds loaned to businesses through the partnership since 2018. 

MarketFinance is building on this growth by developing its lending APIs and investing further in embedded finance models through integrations with software platforms, accountancy platforms, digital banks, and B2B marketplaces as it targets unicorn status. In Q2 2022, MarketFinance will debut its latest digital payments and credit offering for businesses and B2B marketplaces as the next step in its embedded finance strategy. 

Anil Stocker, CEO at MarketFinance, commented: “In a market where profits often come second to growth, we are extremely proud to say we have reached this important profitability milestone. Our track record as a B2B credit provider over the last decade, together with our focus on refining our lending APIs, and working towards launching more payment and credit options for B2B marketplaces, stands us in good stead to build a much larger company. We’re still very early in our long-term journey. MarketFinance is focused on leading the B2B embedded finance market and transforming it in the same way that Klarna has transformed consumer payments and credit. We will reach our ambitious target through the continued development of pioneering new products, hiring great people to our mission, and maintaining partnerships, such as the one we hold with Barclays, to serve as many businesses with finance as we can.”