London, 6 July 2022. Sonovate, the leading provider of embedded finance and payment solutions for the contingent workforce, today announced that it has completed a new securitisation deal with BNP Paribas and M&G Investments, adding £165 million to its funding structure. The deal is an endorsement of Sonovate’s position as a fintech industry leader and reinforces its high-growth trajectory, enabling it to lend over £1.3 billion in invoices this year alone. The company is projected to fund another £2 billion in 2023, with further plans for growth in subsequent years.

Demica, the market-leading working capital focussed fintech, acted as adviser and reporting agent on the transaction, working closely with both Sonovate and BNP Paribas. M&G Investments, Sonovate’s long term funding partner, also took part in the agreement, with a £15 million investment.

As a result of this securitisation, Sonovate will increase its capital efficiency and expand its customer base, especially in the enterprise space. It will also deliver added flexibility for export financing.

Richard Prime, CEO and Co-Founder of Sonovate said: “Sonovate’s vision is to be the funding platform for the future of work. As we scale, we will continue to integrate into the wider ecosystem with the aim of constantly adding value in our market. Deals such as this one provide us an exceptional level of flexibility, which we can extend to our customers, enabling them to access innovative funding solutions via a state-of-the-art platform.”

Increasingly, technology is transforming the world of finance, providing businesses with new opportunities to manage their working capital and move beyond traditional funding options.

Renaud Chalmet, Deputy Head of Corporate Receivables Securitisation, BNP Paribas, said: “This securitisation is designed to support the new world of flexible working. It is scalable, adaptive, and provides stability in the long term. We are excited to be working with Sonovate, supporting them as they continue to deliver rapid growth and empower the contingent labour marketplace with innovative solutions.” .

As a result of the tech revolution and the move towards flexible working, the contingent labour market place is growing very quickly. According to a report in March 2022 by the Staffing Industry Associates (SIA), annual sales revenue is up by a staggering 80% for contract placements.

Sonovate has funded more than £2.75 billion in invoices to date. Last year, the company recorded a 58% year-on-year increase in total funding. Its enterprise lending volume increased by 144% year on year, and enterprise customers now account for about one-third of its total lending volume. More than 3,300 businesses funded by Sonovate have paid more than 30,000 freelancers, contractors, and gig workers in over 40 countries.

 

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Media contacts  

Kitty Guillaume, Karen Lester or Carmen Dixon, Seven Consultancy – [email protected]

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About Sonovate

Sonovate provides embedded finance and payment solutions for the contingent workforce, serving recruitment businesses, consultancies and labour marketplaces that engage contractors and freelancers across the world. Its global API-driven technology platform takes the hassle out of managing contract and freelance worker placement and pay. 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 £2.75 billion to more than 3,300 businesses in 40 countries to ensure over 30,000 people are paid in full and on time for the services they provide.

www.sonovate.com

 

About Demica

 

We are a market-leading fintech, powering the trade finance programmes of the world’s largest trade banks and corporations. Demica’s proposition is simple: our intuitive, cloud-based platform enables financial institutions and corporates to automate and scale their working capital solutions. Today, we have over US$20bn of outstanding programmes running through our platform, across the full spectrum of working capital products. Funded by a diverse range of banks and institutional investors, these programmes enable companies to strengthen their supply chains and redeploy capital to drive growth.

To learn more, visit Demica.com.