Access to capital remains a significant hurdle for small and medium enterprises (SMEs) looking to grow. Many businesses struggle with traditional financing options that fail to align with their cash flow needs. In response to this challenge, London-based Lenkie has secured £49M in a Series A funding round to enhance its transaction-based cashflow management platform. The company aims to simplify borrowing for SMEs, enabling them to access funds when needed. This funding round includes both equity and debt financing, which will support Lenkie’s expansion and product development.
Lenkie previously facilitated over £60M in SME growth financing, demonstrating a steady increase in demand for its services. Earlier reports on SME financing highlighted the inefficiencies within conventional lending structures and the need for digital-first solutions. The company’s approach leverages real-time data to assess risk and provide capital instantly. Compared to similar platforms launched in recent years, Lenkie’s model focuses specifically on transaction-based financing, differentiating it from traditional lending institutions.
How Does Lenkie Support SMEs?
Founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, Lenkie provides financing that integrates seamlessly with SME operations. The company utilizes real-time payments data to determine creditworthiness, ensuring businesses can access capital aligned with their revenue patterns. By removing friction from the lending process, Lenkie seeks to simplify how SMEs obtain funding.
Jeyakumar, formerly a Citigroup credit trader, saw an opportunity to improve financing for underserved markets. He identified that many SMEs struggle not due to lack of growth potential, but because of inefficient borrowing experiences.
“The challenge wasn’t a lack of growth opportunities, it was a broken borrowing experience. By removing friction and making access to capital effortless, we could unlock immense potential and help entrepreneurs realise their ambitions,” said Jeyakumar, CEO and co-founder of Lenkie.
What Are the Plans for the New Funding?
With its £49M funding, Lenkie intends to refine its underwriting models by incorporating more data-driven insights. The company also plans to expand its partnerships with digital platforms that cater to SMEs. Additionally, the funding will support the exploration of new markets, helping more businesses access instant working capital solutions.
A portion of the funds will be allocated to product innovations aimed at improving user experience. Businesses using Lenkie’s credit solutions have highlighted the benefits of easy access to capital for stock investment and supplier payments.
“At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie’s credit facility has been critical in enabling us to achieve all three,” said Ankit Monga of Mongas Kids Wear Limited.
Lenkie’s approach provides an alternative to conventional financing methods, ensuring SMEs receive funds precisely when required. By leveraging transaction-based insights, the company reduces financial risks associated with delayed or misallocated funding. This model aligns well with businesses operating on fluctuating revenue streams.
As financial technology continues to influence the SME lending landscape, Lenkie’s funding signals a growing investor interest in transaction-based financing solutions. While traditional banks rely on lengthy approval processes, fintech companies like Lenkie streamline access to credit through automated data analysis. Moving forward, its ability to scale and adapt will determine its long-term impact on SME financing.
