Lendable reaches unicorn status

Lendable is believed to have reached unicorn status.

The peer-to-peer consumer lender, which is unlisted, has been valued at more than £1bn based on secondary market fundraisings, according to reports.

The analysis, by Sifted, claims the valuation came as an internal transaction saw unnamed early investors and employees cash in around £30m in shares, while Lendable’s existing institutional backers increased their stake.

In contrast, publicly-listed Funding Circle is currently worth £604m.

John Cronin, an analyst for brokerage Goodbody, said the valuation represents a “significant uplift” from the £500m value attached to the business when Balderton Capital led a secondary sale in 2018.

“Notably, Lendable has raised just £4m in equity to date and booked £15m in profits on £32m in revenue in 2019,” he said.

“However, the next acid test from a valuation perspective will be when Lendable seeks to raise more institutional capital for expansion purposes.”

Lendable regularly features among the fastest growing tech firms and has high-profile backing from institutions such as Goldman Sachs.

It has also previously raised £500m from Waterfall Asset Management, NatWest Markets, and Varadero European Special Opportunities.

Lendable has been asked for comment.