Sonovate press release: Record-breaking month for Sonovate
Growing adoption of tech-enabled finance by enterprise businesses leads to record-breaking month for Sonovate
● Sonovate marks record funding month in December, capping a record-breaking year
● 30,000 people in over 40 countries now paid by businesses receiving Sonovate’s finance and technology services
● Growth attributed to faster adoption by recruitment, labour marketplaces, and consultancy customers
● The pandemic and evolving expectations of work are creating irreversible change in the work preferences and choices of people around the world, prompting businesses to rethink how they recruit, retain and remunerate their workers
London & Cardiff, 2 February 2022 – Fast-growing enterprise adoption of business finance technology has helped Sonovate to report record funding volume in December 2021, capping an overall record-breaking year for the UK lender.
Sonovate, a fintech lender that provides finance and technology services to businesses that engage contractors and freelancers, funded £90 million to both existing and new customers in December 2021. This contributed to an all-time record quarter for the company, with £240 million in funding deployed. This took Sonovate’s total funding for 2021 to £700m, a 58% increase on 2020’s total funding of £444m.
The volume of funding provided to enterprise* customers over the course of 2021 increased by 144% year-on-year. Enterprise customers now receive approximately one third of Sonovate’s total lending volume. This significant increase in volume provided to enterprise level organisations demonstrates the significant shift in larger companies’ preferences towards contract and freelance labour during the pandemic, and indicates the huge potential market Sonovate stands to serve in the years ahead.
Richard Prime, co-founder & co-CEO of Sonovate, commented: “The future of work is fast becoming the present-day reality of work. Increasingly we’re seeing large-scale companies adapt how they staff their teams, appreciating the benefits to both businesses and individuals of contract-based and freelance working. The frictionless provision of on-demand funding alleviates an enormous pain point that faces these larger businesses as they adapt to new working practices.”
To date, more than 30,000 freelancers, contractors and gig workers in more than 40 countries have received payments from over 3,000 businesses supported by Sonovate.
Sonovate’s record performance in December was driven in large part by the expanding adoption of its business finance and technology services by consultancies, recruitment agencies and labour marketplaces throughout the world. Over the course of 2021, 20% of all funding was supplied to new customers acquired during the year – more than double the annual volume supplied to new customers in any other year since Sonovate began in 2014. In the last quarter of 2021 alone, Sonovate onboarded 45 new customers.
In September 2021, Sonovate surpassed £2 billion of funding since inception. The second billion pounds of this total was funded four times faster than the time it took Sonovate to fund its first £1 billion. Sonovate envisages continued strong growth in the coming years and expects north of 1.25 billion of total funding in 2022 .
NOTE TO EDITORS
*Enterprise businesses are organisations that generate average annual revenues in excess of £100,000.
Karen Lester or Carmen Dixon, Seven Consultancy
Sonovate provides finance and technology services to recruitment businesses, consultancies and labour market places that engage contractors and freelancers across the world. Its global technology platform takes the hassle out of managing contractors’ appointments, assignments and payments; it enables companies to get back to growing their businesses, confident that funds are in place to help meet payment deadlines.
Since it began funding organisations in 2014, Sonovate has lent over £2 billion to more than 3,500 businesses in 40 countries to ensure over 30,000 people are paid in full and on time for the services they provide.