Lenkie Secures £49M to Expand SME Supplier Payment Financing in the UK

Lenkie, a UK-based fintech specializing in transaction-based SME financing, has secured £49 million in Series A funding to expand its operations. The funding includes £4 million in equity and a £45 million debt facility, led by a US-based private credit fund that focuses on supporting alternative lenders globally. The company aims to address challenges in SME cash flow management, particularly in supplier payments.

SMEs in the UK face increasing difficulties in securing financing, with a £22 billion funding gap resulting from banks scaling back business lending. Lenkie provides an alternative funding model by paying suppliers directly on behalf of SMEs at the start of a transaction, covering costs related to stock, subcontractors, and equipment. This approach contrasts with traditional business loans, which often rely on lengthy approval processes and rigid credit assessments.

Since its launch in 2021, Lenkie has financed over £70 million in SME payments, reaching more than 2,000 suppliers across 40 countries. The company utilizes proprietary underwriting technology and real-time business performance data to assess creditworthiness and structure financing solutions.

Lenkie was co-founded by Sanjeev Jeyakumar and Nnaemeka Obodoekwe. Jeyakumar, previously a credit trader at Citigroup, has structured over £2 billion in lending across emerging markets. His experience in financial markets and working with small businesses influenced Lenkie's focus on supplier payment financing.

With the new capital, Lenkie plans to scale its financing capabilities, enhance its underwriting models, and expand partnerships with platforms that serve SMEs. The company is positioning itself to meet the growing demand for alternative business funding solutions in the UK.