The SME finance landscape is undergoing a fundamental shift as banks retreat from business lending, leaving a staggering £22 billion SME funding gap in the UK. Cashflow management platform, Lenkie, has today announced £49 million in Series A funding to transform the way growing UK businesses access capital. The funding round, which includes £4 million in equity and a £45 million debt facility, was led by a large US private credit fund focussed on supporting lenders internationally.
Growing businesses face the challenge of having to spend money in order to make it; footing the bill for stock, subcontractor payments and equipment before a product is even sold. Lenkie’s unique focus on payables financing – paying suppliers directly on behalf of SMEs at the beginning of a transaction – ensures businesses can secure the resources they need upfront to finance these growth-related expenses.
While the traditional borrowing experience remains slow, rigid, and reliant on outdated credit assessments (leaving thousands of viable businesses underserved), Lenkie’s cash flow platform gives SMEs access to fast, flexible funding exactly when and how they need it, removing growth bottlenecks and unnecessary friction.
Founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, Lenkie has demonstrated strong market traction, funding over £70 million to underserved SMEs and funding payments to 2,000 suppliers across 40 countries. Leveraging proprietary underwriting technology and real-time performance data, the company delivers bespoke financing solutions that dramatically enhance speed and financial inclusion, empowering hundreds of businesses with faster approvals and a seamless borrowing experience
Sanjeev Jeyakumar, CEO and co-founder of Lenkie, says: “At its core, all lending is built on a foundation of trust. We’re able to use data and technology to understand the nuances of each business to build that trust in seconds. This enables us to provide fast and flexible capital when it’s most impactful. By financing specific transactions we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow”
Lenkie’s journey began when Sanjeev Jeyakumar, a former Citigroup credit trader, saw first-hand the power of real-time data to de-risk financing in underserved markets, whilst structuring over £2 billion in lending across emerging markets. Whilst building a venture-backed B2B marketplace helping small business owners access logistics services he was exposed to thousands of entrepreneurs navigating the challenges of scaling.
“The challenge wasn’t a lack of growth opportunities, it was a broken borrowing experience. By removing friction and making access to capital effortless, we could unlock immense potential and help entrepreneurs realise their ambitions” said Sanjeev Jeyakumar, CEO and co-founder of Lenkie.
The market timing for this is critical. Despite the £22 billion funding gap faced by UK SMEs, they are driving 60% of employment and 50% of GDP, with demand for alternative financing solutions at an all-time high. Lenkie’s transaction-based funding model is at the forefront of this change, providing businesses with an intuitive, need-based financing solution rather than inflexible, one-size-fits-all loans. This precise approach not only reduces the risk of funds being misallocated or underutilised, it is also more cost-effective for SMEs, aligning with their business growth cycles and matching real-time needs.
“At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie’s credit facility has been critical in enabling us to achieve all three. Lenkie offers an outstanding service and the continuous product innovations ensure an excellent user experience. It’s the perfect solution to help us scale” said Ankit Monga, Mongas Kids Wear Limited.
Looking ahead, Lenkie is poised to accelerate its mission of transforming SME financing in the UK. With fresh capital and strong industry momentum, the company plans to enhance its data-driven underwriting models, expand partnerships with leading platforms, and explore new markets. By breaking down funding barriers, Lenkie is not just enabling growth for SMEs, but paving the way for the next generation of entrepreneurs across the UK.
Read the orginal article: https://ffnews.com/newsarticle/funding/lenkie-secures-49m-to-fund-business-supplier-payments-and-accelerate-growth-in-uk/
