Goldman-backed lending startup raises £ 25million after spending money on employee loans
A Goldman Sachs-backed lending startup that provides employee benefit loans has raised £ 25million and is considering additional funds after spending tens of millions of pounds.
Based in london Neyber secured additional funding in recent months from current investors including Police Mutual Police Savings Fund and family offices after losses of around £ 18million in 15 months ending in March of Last year. The start-up only made £ 1.5million in revenue when it established its lending business.
The company was also forced to forgo around £ 1million in interest income due to an operational error, resulting in compensation for some clients. Neyber’s accounts said it was a “one-off”.
Founded in 2013 by former Goldman tech expert Martin Ijaha, former Goldman banker Monica Kalia and Ezechi Britton of Credit Suisse, Neyber offers loans through internal employee benefit systems.
He has signed 400 clients, including Asda, Co-op, Bupa, Harrods, law enforcement and the NHS Trusts, loaning around £ 175million to their employees for an average of around £ 8,000.
Neyber received backing from Goldman in 2017 in the form of debt and a £ 115million equity investment.
By lending through an employee benefits program, Neyber says he enjoys increased financial control over loans that might otherwise be refused by banks, allowing him to offer higher interest rates. more competitive. It also offers an alternative to payday loans.