Key facts
- Small business lender Iwoca is exploring a potential sale or IPO.
- The fintech company could be valued at over £1 billion.
- Banks and payment companies are seen as potential buyers.
- Iwoca's revenues reached £234 million in fiscal year 2024.
- Pre-tax profits nearly tripled to £59 million in fiscal year 2024.
London-based fintech firm Iwoca, which provides working capital to small businesses, is reportedly considering a sale that could value the company at over £1 billion. The company, backed by investors including CommerzVentures and Augmentum Fintech, is also discussing an initial public offering as an alternative.
Discussions are in the early stages, and a sale may not materialize. Iwoca generated revenues of £234 million in fiscal year 2024, a significant increase from £143 million in 2023. Pre-tax profits nearly tripled to £59 million in FY24. The company operates in the UK and Germany and employs 600 staff across offices in London, Leeds, Berlin, and Frankfurt.
In the broader market context, approximately 60% of UK small-business lending in 2024 originated from non-bank lenders, according to a report from the British Business Bank. Banks and payment companies are considered likely suitors for Iwoca.