Storfund, a capital fintech for small and medium enterprises (SMEs) based in London, announced that it has secured US$36.5 million in funding from Union Bancaire Privee, Switzerland, and private investors.
The newly raised funding, according to the company’s announcement on Wednesday (10/2), will be used by Storfund to expand its global operations to help market traders access working capital and open up liquidity.
“Storfund bridges the gap between e-commerce merchants and the capital served by traditional banks that are too rigid,” said former investment banker and co-founder of Storfund, George Brintalos, in London.
So far, the business model that Storfund offers is very acceptable to the market. The proof, just 18 months of operation, Storfund has enjoyed tremendous business growth. In the year ended December 2020, Storfund’s business was 1,200%.
In fact, according to the company statement, Storfund has broken even in just the first six months. This proves that the presence of new provision of capital that is different from the existing one is highly anticipated by small traders in various regions, especially Europe.
This year, Storfund will channel US$1 billion in capital to traders selling in Amazon Europe, US, and Asia. To date, Storfund is Amazon Europe’s approved funding provider so it has a presence in 17 of Amazon’s 20 markets.
Storfund’s business is believed to grow significantly in the future considering that the global e-commerce industry, which has been accelerated by the pandemic, is increasing very rapidly. In 2020, for example, recorded sales through global e-commerce will reach US$3.5 trillion, 22% of the entire world retail market.
“Fintech and e-commerce are generating attractive financing opportunities,” said Colin Greene, Head of Private Debt at Union Bancaire Privee. “We are pleased to work with Storfund and support the financing they provide to SMEs who sell through e-commerce marketplaces.”