London-based Sonovate, which provides embedded finance and payment solutions for the contingent workforce, has completed a £165 million securitisation deal with BNP Paribas and M&G Investments.
The company says the deal will enable it to lend over £1.3 billion in invoices “this year alone”.
Demica, the working capital-focused fintech, acted as adviser and reporting agent on the transaction, working closely with Sonovate and BNP Paribas. M&G Investments, Sonovate’s long-term funding partner, also took part in the agreement, with a £15 million investment.
As a result of this deal, Sonovate says it will increase its capital efficiency and expand its customer base, and also deliver added flexibility for export financing.
“Sonovate’s vision is to be the funding platform for the future of work,” says co-founder and CEO Richard Prime.
Sonovate claims to have funded more than £2.75 billion in invoices to date, and recorded a 58% year-on-year increase in total funding last year.
The company says that over 3,300 businesses funded by Sonovate have paid 30,000+ freelancers, contractors and gig workers in over 40 countries.