- Thursday, April 25, 2024
By: Radhakrishna N S
LONDON-based lending startup Neyber has raised £25 million in recent months.
The Goldman Sachs-backed lending business has secured extra funding from current investors, including police savings fund Police Mutual, and family offices.
The company is also chasing another major equity growth phase that is expected to add millions more to its cash reserves.
It recorded losses of around £18m in 15 months ending March last year.
The firm was also forced to forgo around £1m in interest revenue following an operational fault, leading to compensation for some customers.
The loans granted to employees at its client companies helped them consolidate debts or access short-term loans, which are then repaid through salary deductions.
It also makes loans available through internal staff benefit systems.
Monica Kalia, one of the founders, of the business said her company spent heavily after it started its operations in 2013 to secure clients and others as the business was focussing on sustainability and profits.
Kalia was quoted by The Sunday Telegraph: “Through the 2018 financial year, we were in an investment period establishing the business.”
The Indian-origin businesswoman noted that her firm gave businesses a way to help improve the financial position of staff.
Kalia added: “Employers have increasingly been looking at issues such as financial stress, but other than credit unions, there was no employer-based lending model. There is an opportunity to provide fair financial products through the employer channel, and the importance of financial well being is becoming more entrenched in UK corporates.”
The firm was founded by former Goldman Sachs top executives Martin Ijaha, Kalia, and Ezechi Britton of Credit Suisse.
The startup inked deal with 400 clients, including Asda, Co-op, Bupa, Harrods, and others, lending around £175m to their staff members.
