UK neolender Proportunity raises £105m to expand workforce and boost loans
London-based neolender Proportunity has raised £105 million through debt and equity funding as it aims to help first-time buyers get a foot on the property ladder.
The round was led by VentureFriends, Kibo Ventures and existing investors Anthemis, Entrepreneur First and Amro Partners.
The cash will enable Proportunity to expand its workforce and increase its maximum loan size from £90,000 up to £150,000 per home.
The fintech provides home purchase equity loans to support first-time buyers and enables users to afford homes with only a 5% deposit, reducing the amount they need in savings.
Proportunity says its machine learning technology identifies fair valued homes in areas with a high potential for growth, reducing the risk of lending and the need for a large deposit.
CEO and co-founder Vadim Toader says: “In the UK there is a £100-200K gap between what buyers want and what they can afford, mainly caused by maximum income and mortgage ratio restrictions and high deposit requirements.
“In a market of fast-rising house prices, first-time buyers and those wishing to progress on the property ladder are facing a losing battle.”