London, UK based peer to peer lending platform RateSetter has raised £13m in venture funding led by Woodford Investment Management. RateSetter is a peer-to-peer lending website that allows its users to lend and borrow money directly from each other according to their own interest rates. It cuts the cost of borrowing and enables those who are already in debt to get out of their debts quicker, while at the same time increasing returns for savers.
According to a statement, RateSetter, which has so far raised over £40m in capital, will use the funds to scaleup ahead of launching its Innovative Finance ISA. FinTech firm Zopa bags £32m in round co-led by Northzone Rhydian Lewis, founder and CEO of RateSetter, commented on the news. “RateSetter is giving ordinary investors the opportunity to access better returns and borrowers the opportunity to look beyond their bank. “It is important to keep up the momentum of investing in our platform and this further injection of capital, coupled with the appointment of Paul Manduca as chairman, lays the ground for an important new phase of development for our business,” said Lewis, noting that the platform had already delivered over £70m in interest to its lenders.