UK-based fintech startup Iwoca, which provides financing to small and medium-sized enterprises, might be exploring a sale with a valuation exceeding £1 billion (about $1.27 billion). Following a June report by Sky News indicating that the company hired tech investment bank Qatalyst Partners to oversee an auction, CEO Christoph Rieche acknowledged that their long-standing venture capital shareholders are naturally looking for liquidity. However, Rieche emphasized that any potential secondary share sale or acquisition would not impact the company's core strategy, and there are no immediate plans for further funding rounds due to their current profitability.
Iwoca has capitalized on the retreat of incumbent banks from SME lending, significantly increasing its market share. According to the company's 2025 financial figures, loan origination surged to £1.5 billion (about $1.9 billion), driving revenues up by 56 percent to £366 million (about $465 million). Profits also nearly doubled during this period, reaching £113 million (about $143 million). By leveraging open banking, the startup has automated its loan approval processes, allowing it to form strategic partnerships with platforms like Monzo, Starling, and Tide.
The company recently resolved a regulatory challenge involving its long-term shareholder Redline Capital, which had faced asset freezes due to UK sanctions. The issue was settled when the associated individual was removed from the UK sanctions list in 2025. Moving forward, Iwoca has expanded its offerings to include business credit cards, credit scoring, and an M&A platform, though it currently has no plans to integrate stablecoin technology. Despite Rieche noting that London's appeal as a fintech hub has diminished slightly due to tax changes, the company will maintain its headquarters in the city.