Funding Circle Sells US Business to iBusiness Funding for £33 Million

UK-based lending platform Funding Circle has reached an agreement to sell its US business to iBusiness Funding for nearly £33 million (US$41.9 million). This transaction, announced initially in March 2024, includes all loan portfolios and results in a £10 million gain prior to transaction costs. The proceeds will be reviewed according to Funding Circle's capital allocation framework, with the sale expected to be completed by the end of June 2024.

Funding Circle's decision to divest its US operations aligns with its strategy to streamline its business and concentrate on profitable growth within the UK market. Officials from Funding Circle highlighted that this move will support the company in maintaining profitability in the latter half of 2024 and achieving medium-term growth targets, projecting a net income growth of 15-20% CAGR and PBT margins under 15%.

​iBusiness Funding, known for its expertise in SBA lending, aims to simplify the lending process to facilitate capital provision to SMEs. The acquisition underscores a commitment to advancing business support, with Funding Circle's US team set to join iBusiness Funding. This integration is expected to continue delivering flexible and efficient funding solutions to small and medium-sized enterprises across the US.