Lendinvest: Fintech lands £500m investment from JPMorgan

Property fintech Lendinvest secured £500m in funding from JPMorgan as it looks to return to profitability after a rough year for mortgage lenders.

The AIM-listed firm said on Tuesday that the Wall Street giant had extended its existing investment by an additional £500m, with its total funding reaching £1.5bn. JPMorgan first invested in the company in 2021.

Lendinvest, which operates an online marketplace for property finance, said the deal brought its funds under management to more than £4.55bn.

It said the new funding would go towards the growth of its mortgages proposition, which includes buy-to-let and residential products.

“This milestone transaction is a major vote of confidence in Lendinvest and its market-leading origination capability and technology, and it demonstrates our continued ability to scale our strategic partnerships,” said Rod Lockhart, Lendinvest’s chief executive.

“This extension will significantly strengthen our already competitive buy-to-let proposition, ensuring we remain at the forefront of the industry through our innovative approach and exceptional customer service.”

The firm’s shares have tumbled 86 per cent since it listed on the London Stock Exchange in July 2021.

In July, Lendinvest revealed that it swung to a £27.3m pretax loss in the year to 31 March 2024, compared to a £14.3m profit the year prior.

Lockhart received no bonus or pay rise on his £400,000 salary last year, while his performance shares were cancelled.

The wider mortgage market grappled with a slump in demand last year as higher interest rates put off borrowers. Lendinvest expects to return to profit for the 2025 financial year.

Alongside JPMorgan, Lendinvest’s other backers include global heavyweights like HSBC, Citigroup and National Australia Bank.