Lenkie, a London-based cashflow management platform that just raised £49 million in Series A funding to shake up how growing businesses get the financial support they need. Access to capital has long been a make-or-break factor for many businesses.
Banks in the UK are pulling back from business lending, leaving behind a staggering £22 billion funding gap. That’s enough money to build entire industries, or crush them if left unaddressed.
Lenkie’s £49 million haul includes £4 million in equity and a whopping £45 million debt facility, courtesy of a large US private credit fund focused on supporting lenders internationally. This isn’t pocket change, it’s a war chest designed to turbocharge Lenkie’s mission to provide fast, flexible capital to SMEs.
Why does this matter?
Because SMEs are the backbone of the UK economy. According to government statistics, these businesses contribute **60% of employment** and **50% of GDP**. Yet, despite their outsized role, many SMEs struggle to secure loans or financing when they need it most.
Traditional banks often require mountains of paperwork, collateral, and weeks, if not months, to approve applications. For a business trying to seize an opportunity or weather a cash crunch, delays can be devastating.
Lenkie flips the script by offering transaction-based funding. Instead of handing over lump sums with rigid repayment terms, Lenkie aligns financing directly with real-time business needs. Need to pay suppliers upfront?
Lenkie steps in to cover those costs, ensuring you don’t miss out on critical stock or services. This approach not only minimizes risks but also ensures funds are used effectively, no more borrowing $100,000 to fix a $10,000 problem.
Co-founders Sanjeev Jeyakumar and Nnaemeka Obodoekwe launched the platform in 2021 after identifying a glaring inefficiency in SME financing.
Jeyakumar, a former Citigroup credit trader who structured over £2 billion in lending across emerging markets, saw firsthand how real-time data could transform risk assessment. “At its core,” he explains, “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 insight became the cornerstone of Lenkie’s strategy.
By leveraging proprietary underwriting technology and analyzing real-time performance metrics, the company delivers faster approvals and a seamless borrowing experience. To date, Lenkie has funded over £70 million for underserved SMEs, facilitating payments to 2,000 suppliers across 40 countries.
But what makes Lenkie truly stand out is its ability to adapt to modern business realities. Unlike traditional lenders bogged down by outdated processes, Lenkie’s model is agile, responsive, and laser-focused on growth.
As Jeyakumar puts it, “By financing specific transactions, we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow.”
The proof, as they say, is in the pudding. Take Ankit Monga, founder of Mongas Kids Wear Limited, who credits Lenkie with helping his business scale. “At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships,” Monga says.
“Lenkie’s credit facility has been critical in enabling us to achieve all three. It offers an outstanding service, and the continuous product innovations ensure an excellent user experience.”
For Monga, and countless other entrepreneurs like him, Lenkie isn’t just another lender; it’s a partner invested in their success. And that’s precisely the kind of relationship SMEs crave but rarely find in traditional banking systems.
With fresh capital in hand, Lenkie is poised to expand its footprint significantly. Plans include enhancing its data-driven underwriting models, forging partnerships with leading platforms, and exploring new markets beyond the UK. These moves come at a crucial time, as global economic uncertainty continues to squeeze SMEs worldwide.
Research underscores the urgency of addressing this issue. A 2023 report by the British Business Bank revealed that nearly half of all UK SMEs face challenges accessing finance, with younger firms particularly vulnerable.
Meanwhile, a World Bank study highlighted that improving SME financing could boost global GDP by up to 5%. Clearly, there’s immense potential—not just for Lenkie but for the broader ecosystem of entrepreneurship and innovation.
As Lenkie embarks on its next chapter, one thing is clear: the company isn’t just filling a void left by retreating banks; it’s reimagining the very fabric of SME financing. By combining cutting-edge technology with a deep understanding of business needs, Lenkie is paving the way for a future where capital flows freely to those who deserve it most.
