Channel launches $300m new Fintech Lending Strategy

By Edlyn Cardoza

Channel recently announced the launch of their specialist Fintech Lending Strategy, with commitments from global institutional investors. The first $100 million tranche of the $300 million strategy will be deployed immediately to leading FinTech lenders to fund their loans to SMEs.  

Having recently announced their significant investment into the SME lending space with custom-built technology and an expert team, Channel has started offering immediate support to growing businesses. They have built a substantial pipeline and intend to deploy funds immediately.

“Providing much-needed capital to the often-overlooked SME sector has always been a goal at Channel. Fintech lending platforms are a critical part of that – making it faster and easier for deserving SMEs to access loans. We have been tirelessly enhancing our own digital lending capabilities and have exciting developments coming in that space,” said Walter Gontarek, CEO of Channel. “Meanwhile, the additional, sizeable investment into our Fintech Lending Fund will see us work with a greater number of tech-powered lending platforms, firstly in Europe and North America, to see capital deployed at pace to the SME community.”

The funds will initially be deployed through a range of specialist FinTech lenders based in developed markets to the small businesses that need them most. In recent years, FinTech lenders have originated hundreds of billions of USD in loans, growing exponentially. With FinTech valuations decreasing in recent months, founders are finding it ever harder to raise much-needed capital to float these loans without significantly diluting their equity. The beauty of our FinTech fund is that it’s a non-dilutive debt investment model, protecting the FinTech’s equity and allowing them to offer small businesses the finance they need to succeed quickly.

With the new fund, Channel aims to be a fast and efficient partner for FinTech lenders. They offer strategic advice on structure and flexible capital that can scale rapidly with growth.

Paul Wilson, Channel’s Chief Investment Officer, said, “The investment into our data-driven lending fund is a significant step forward for Channel – it will see us work closely with other digital platforms to facilitate loans for SMEs that are faster, simpler, and don’t dilute their business. Indeed, the deployment of dedicated funds like this is crucial in supporting and fuelling the ongoing growth of the global SME sector. The backing our fund has received underlines investors’ growing appetite within the fintech lending space. Moreover, it’s a clear demonstration of the trust investors have in Channel’s track record of managing their investments.”

This new fund offers a compelling funding option for the FinTech lenders and the SMEs they serve and presents an exciting investment opportunity for our clients as demand for this funding model continues to outpace supply.