Mortgage marketplace LendInvest has secured £200 million in fresh funding amid rumours of a stock market flotation.
The company, which offers individuals and institutions investment opportunities in UK mortgages, has gained the fresh financing from HSBC in the form of a loan.
The money will allow the company to enter the regulated home loan market, offering short-term bridging finance for up to 12 months to homeowners.
The move comes after it emerged last month that LendInvest had hired advisers at Lazard to assess various options including a £500 million potential initial public offering (IPO).
Co-founder and chief executive Christian Faes said: “LendInvest continues to attract investment onto our platform from some of the world’s largest and most sophisticated investors. This new funding from HSBC is a further important step forward in the evolution of our business.
“We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market. Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200 billion mainstream UK mortgage market”
Founded in 2008, the company has facilitated £1.5 billion of loans to borrowers who have bought, built or renovated more than 5,000 properties.
In 2017, it launched the first tranche of a £500 million retail bond programme on the London Stock Exchange
Originally set up as Montello Bridging Finance, the company launched online platform LendInvest in 2013.
Mr Faes serves as chief executive, while his co-founder Ian Thomas is chief investment officer.
Existing backers include venture capital firm Atomico, which has also invested in payments firm Klarna and mortgage broker Habito.
Its senior advisers are former OneSavings Bank chairman Stephan Wilcke and former Uber and Betfair executive Niall Wass.