REG-Augmentum Fintech Plc: Portfolio Fundraising Update: Tide, Zopa Bank, iwoca

Augmentum FintechAnnouncement

02/11/2023 07:00

2 November 2023

Augmentum Fintech plc
Portfolio Fundraising Update: Tide, Zopa Bank, iwoca

Augmentum Fintech plc (LSE: AUGM) (“Augmentum” or the “Company”),
Europe’s leading publicly listed fintech fund, notes successful fundraising
developments at three of its portfolio companies: Tide, Zopa Bank and iwoca.

Tide

The Company has invested a further £4.2 million in Tide, (www.tide.co, 14.1%
of portfolio1), the business banking platform, through a combination of
primary and secondary transactions.

Augmentum first invested in Tide in August 2018 and with this latest
investment the Company aims to capitalise on the bank’s accelerating growth
trajectory. Tide announced on 20 September that it has reached 10% market
share of all UK small businesses, with more than 550,000 customers
(“members”)2. Tide acquired the UK’s leading business credit marketplace
Funding Options in November 2022, with regulatory approval from the FCA in
February 2023. The acquisition fast-tracked the company’s credit offering by
providing existing and new members access to over 120 lenders.

The past year also saw Tide realise the first steps in its international
ambitions, as it officially launched in India in December 2022, expanding
throughout 2023. Tide now has more than 150,000 members in India.

Zopa Bank

Zopa Bank (www.zopa.com, 11.9% of portfolio1), the digital-first bank,
announced on 8 September that it has raised £75 million in Tier 2 capital to
further drive its growth and expansion plans.

The financing follows £75 million of equity funding raised in Q1 this year,
in which Augmentum participated, which the bank used to support its M&A
strategy and to acquire Point-of-Sale platform DivideBuy amongst other
activities. Zopa Bank now serves 1 million customers and aims to reach 5
million by 2027. Zopa Bank expects to hit full-year profitability for the
first time this financial year.

iwoca

iwoca (www.iwoca.co.uk, 3.1% of portfolio1), the SME lender, announced on 17
October that it has secured a new debt facility with initial commitments of
£200 million from Barclays Bank plc and Värde Partners. As the UK’s high
street lenders retrench and reduce access to capital for SMEs, this funding
line allows iwoca to meet the growing SME demand for working capital. This
comes as iwoca hits net profitability for the fourth consecutive quarter.

In January this year, iwoca secured an increase and extension to its existing
funding line, with long-standing partner Pollen Street Capital - from £125
million to £170 million. With the new £200 million funding line from
Barclays and Värde this now takes the total debt commitments to over £850
million.

Tim Levene, Augmentum Fintech CEO, said: “Amidst challenging macroeconomic
conditions and geopolitical uncertainty, these three key portfolio companies,
which together comprise nearly 30% of our total portfolio value, have not only
shown remarkable resilience but have also continued their upward growth
trajectory, as evidenced by their successful and substantial funding rounds.
From the time of our initial investment, these businesses have undergone a
transformative journey, growing from employing fewer than 400 individuals and
generating under £100 million in revenue, to now collectively boasting a
workforce of over 2,500 dedicated professionals and being on track to generate
upwards of £500 million in annual revenue. These companies have not just
survived; they have thrived, setting new industry standards and driving
positive change. We look forward to sharing a fuller update to our
shareholders in our interim results later this month.”

Notes

1 Portfolio percentage values as at 31 March 2023.
2 Tide press release dated 20 September 2023.
 

Enquiries

 Augmentum Fintech Tim Levene (Portfolio Manager) Georgie Hazell Kivell (Marketing and IR)  +44 (0)20 3961 5420 georgie@augmentum.vc  
 Quill PR Nick Croysdill, Sarah Gibbons-Cook (Press and Media)                              +44 (0)20 7466 5050 press@augmentum.vc    
 Peel Hunt LLP Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)                      +44 (0)20 7418 8900                       
 Singer Capital Markets Harry Gooden, Robert Peel, Alaina Wong (Investment Banking)         +44 (0)20 7496 3000                       
 Frostrow Capital LLP Paul Griggs (Company Secretary)                                       +44 (0)20 3709 8733                       

About Augmentum Fintech

Augmentum invests in fast growing fintech businesses that are disrupting the
financial services sector. Augmentum is the UK’s only publicly listed
investment company focusing on the fintech sector in the UK and wider Europe,
having launched on the main market of the London Stock Exchange in 2018,
giving businesses access to patient capital and support, unrestricted by
conventional fund timelines and giving public markets investors access to a
largely privately held investment sector during its main period of growth.

 



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