Wonga secures $22 million funding round

Balderton, Accel Partners and Greylock Partners back short-term lending startup, Wonga, for global expansion.

By News Desk
8th June 2009 at 13:04

Wonga secured $22 million funding round from VCsWonga, the web 2.0 startup that offers short term cash loans, has today confirmed a new $22.25 million funding round supported by existing investors Balderton Capital as well as new backers Accel Partners and Greylock Partners.

This is a great example of a cash generative, profitable web business attracting significant funding at a time when many see VC funding in the web space drying up.

Ultimately though, as co-founder Errol Damelin set out in an interview about Wonga with SmallBizPod earlier this year, it’s the startup’s automated financial risk assessment back end that must be proving equally attractive as positive cash flow to investors.

The business has already provided cash advances to over 100,000 people with apparently very low default rates.

Errol Damelin said today:

We’ve built to scale and there is now huge scope for expansion and delivering even more value for our customers. Balderton Capital has backed us from concept and our two new investors show how game-changing the Wonga proposition is.

Being an innovative company in the financial services space was always going to be either impossibly difficult, or just what the industry needed after the great credit crunch calamities at the end of 2008.

It’s good to see Damelin and his team at Wonga have clearly impressed VCs and demonstrated that where there’s focus on a real business model and innovation, there’s still funding to be found.

Commenting Is Easy

Do you have an opinion on this news item? Have something to add that others might find helpful? Then please leave a comment in the box below.

If you'd like to have your image included next to your comments here, then you can set yourself up with an avatar in just a couple of clicks.

Leave a comment

Related Posts

Photostream

Listen to the sales podcast for SMEs Subscribe to the podcast on iTunes

BUSINESS PODCASTS

Click on one of the play buttons to listen to inspirational interviews with entrepreneurs from SmallBizPod.

SmallBizPod #64 - British Library, Facebook and Startups

SmallBizPod #64 - British Library, Facebook and Startups

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #50 - Martin Webb podcast interview

SmallBizPod #50 - Martin Webb podcast interview

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #58 - Who Is Afraid Of The Female Entrepreneur?

SmallBizPod #58 - Who Is Afraid Of The Female Entrepreneur?

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #51 - Interview with Nigel Botterill of thebestof

SmallBizPod #51 - Interview with Nigel Botterill of thebestof

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #82 - Budget podcast 2009

SmallBizPod #82 - Budget podcast 2009

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #97 - John Griffin of Addison Lee

SmallBizPod #97 - John Griffin of Addison Lee

PostedDetails | PostediTunes
play small business podcast now

PARTNER PROMOTIONS

If looking to boost your businesses performance with promotional marketing, travel incentives or incentive schemes get it touch with NDL Group