The SME finance landscape in the UK is undergoing a seismic shift as banks retreat from business lending, leaving a staggering £22 billion funding gap. Amid this challenge, UK-based Lenkie, a cashflow management platform, has secured £49 million in Series A funding to revolutionise how growing businesses access capital.
The funding round, which includes £4 million in equity and a £45 million debt facility, was led by a large US private credit fund focussed on supporting lenders internationally.
How was the idea born?
Lenkie was founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe. Jeyakumar’s background as a former Citigroup credit trader played a pivotal role in shaping Lenkie’s strategy. His experience in structuring over £2 billion in lending across emerging markets revealed the potential of real-time data to de-risk financing. This insight, combined with exposure to scaling challenges faced by SMEs, led to the creation of a solution that aligns funding with business growth cycles.
New approach to SME financing
UK SMEs contribute 60% of employment and 50% of GDP, yet they struggle with access to capital. Lenkie’s transaction-based funding model addresses this gap with a precise, cost-effective approach. By aligning financing with real-time business needs, the company minimizes risks of misallocation and ensures funds are used for growth.
Its model centres on payables financing, directly covering supplier payments on behalf of SMEs at the start of a transaction. This ensures businesses can secure stock, equipment, and subcontractor services upfront, easing cash flow pressures. Unlike traditional lending, which is slow and rigid, Lenkie’s platform provides fast, flexible funding tailored to business needs, reducing growth bottlenecks.
Lenkie has funded over £70 million for underserved SMEs, facilitating payments to 2,000 suppliers across 40 countries. The company leverages proprietary underwriting technology and real-time performance data to enhance speed and financial inclusion, delivering faster approvals and a seamless borrowing experience.
What’s next for Lenkie?
With fresh capital and growing market momentum, Lenkie aims to enhance its data-driven underwriting models, expand partnerships with leading platforms, and explore new markets. By breaking down funding barriers, the company is not just supporting SMEs but driving the next wave of entrepreneurship across the UK.
Sanjeev Jeyakumar, CEO and co-founder of Lenkie, said: “At its core, all lending is built on a foundation of trust. We’re able to use data and technology to understand the nuances of each business to build that trust in seconds. This enables us to provide fast and flexible capital when it’s most impactful. By financing specific transactions we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow”
“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. Lenkie offers an outstanding service and the continuous product innovations ensure an excellent user experience. It’s the perfect solution to help us scale,” said Ankit Monga, Mongas Kids Wear Limited.
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