Exclusive: Plend secures Varengold funding line

Peer-to-peer lending platform Plend has secured a funding line from German institution Varengold Bank, Peer2Peer Finance News can exclusively reveal.

While the overall value of the deal has yet to be announced, it is understood to be an eight-figure amount.

According to documents filed with Companies House, Plend registered a new charge against the company on 27 July 2023, with Varengold named as the creditor. Under the terms of the deal, Varengold will take a first floating charge against the company as collateral against the loan. This extends to Plend’s sister companies, insurance policies and assets.

The deal was certified by the law firm Osborne Clarke.

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Varengold Bank has backed a number of P2P lenders and alternative lending platforms in recent years, including EstateGuru, Assetz Capital, MarketFinance and LendInvest.

However, the institutional investor has been the subject of a number of negative headlines this year, after it emerged that the German Federal Financial Supervisory Authority is investigating the bank’s payment transaction business in its commercial banking division, due to possible compliance violations.

Read more: Exclusive interview with Plend’s Nathan Spiteri

Meanwhile, Plend has been in growth mode over the 12 months, inking a number of new partnerships and funding deals as it aims to become a leading consumer lending platform, with a mission to end financial exclusion.

In November 2022, Plend secured a £40m investment from a series of new and existing investors. Investors included Leon and Soho House backers Active Partners, as well as Velocity Juice, Sivo and the founders from Monzo, Starling Bank and Oodle Car Finance, alongside existing pre-seed investors Ascension, Tomahawk Venture Capital, DD Venture Capital and Haatch.

Read more: Varengold hits out at “grossly misleading media coverage” amid compliance probe

Plend has been contacted for comment.