UK-based fintech kennek has raised USD 12.5 million in a seed funding round aiming to enlarge its tech team and accelerate its product development. The funding round was led by HV Capital and supported by the Dutch Founders Fund, AlbionVC, FFVC, Pug& Play Ventures, and Syndicate One.

With the newly acquired funds, kennek wants to improve the rapidly expanding USD 2.3 trillion private debt market with its operating system for lenders. kennek’s objective The company’s commitment is to eliminate the complexity and inefficiency of the non-bank lending sector, as until now lenders relied on Excel and other unconnected tools and data. The current methods result in a costly, time-consuming, and prone-to-error process, failing to leverage recent innovations, including Open Banking, Open Finance, and payments.

With its vertical SaaS offering, kennek covers several aspects of lenders’ operations, from loan underwriting, monitoring, and servicing to investor reporting. The platform uses API technology to create a single point of truth for lenders, borrowers, and investors. kennek plans to use the USD 12.5 million funds to improve its growth in its home market and further expand the platform’s functionality. Moreover, the company aims to extend its geographic reach into continental Europe, following the recent signing of its first client in the region.

According to company officials, kennek’s solutions provide lenders with the necessary tools to capitalise on the growth of the non-bank lending space. The company’s platform caters to the requirements of several types of loans, including bridge and development, SME term, and R&D, among others. This funding comes after a period of rapid development in both the size and complexity of the private credit market. The regulatory framework for banks affects their ability to lend to businesses, while borrower defaults increase in the higher interest rate environment, making the management of loan portfolios and credit risk challenging for lenders.

More information about kennek Founded in 2021, kennek provides the operating system for lending, with its platform being designed to increase lenders’ operational efficiency and ability to scale. The company integrates API-based solutions, enabling lenders to implement new technologies for Open Banking, Open Finance, payments, and credit scoring, without the cost of integration. Moreover, the platform comes pre-packaged with configurable settings and workflows, eliminating the need for tech teams and coding knowledge, as well as an increased level of data security. kennek’s solution allows lenders to proactively manage risk, use real-time data to detect threats, and automate borrower reminders and covenant calculations.

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