Small business lender iwoca is considering options to provide liquidity to its longstanding venture capital shareholders, following another year of strong lending growth and profitability.
Co-founder and chief executive Christoph Rieche has indicated that a transaction allowing investors to realise some of their holdings is increasingly likely, although the company has not committed to a sale, stock market flotation, or secondary share transaction.
In an interview with Tech.eu, Rieche explained that some investors had backed the company for almost 15 years, while its last equity financing round took place in 2019. Even its most recent venture investors have therefore held their stakes for approximately seven years.
That investment history creates a different financing requirement from a company seeking capital to maintain operations or fund its immediate expansion. Iwoca has developed an established lending business and is generating profits, allowing management to consider arrangements focused on existing shareholders.
A secondary share transaction would enable investors to sell holdings to another buyer without necessarily requiring the company to issue new equity. An outright acquisition or flotation would involve different ownership and governance arrangements, but none has been agreed.
Reports of a potential sale emerged in June, when Sky News identified Qatalyst Partners as the investment bank overseeing a process that could value iwoca at more than £1bn. That figure remains an indicative valuation reported during the process rather than a confirmed transaction price.
The discussions follow substantial financial growth. Iwoca increased revenue by 56% to £366m in 2025, up from £234m in the preceding year. The company reported profit of £85.1m in its September financial update, supported by greater lending volumes and operational improvements.
Loan originations rose from £952m in 2024 to £1.5bn during 2025. Across its UK and German operations, iwoca funded approximately 100,000 small business loans during the year, taking cumulative lending since 2012 beyond £6bn.
Founded by Rieche and James Dear, iwoca specialises in finance for small and medium-sized businesses. Its UK lending products provide facilities ranging from £1,000 to £1m, supporting working capital requirements, investment, inventory purchases, and other commercial expenditure.
The business has developed technology that uses financial information and automated assessment to process applications, allowing it to serve smaller borrowers that may require a different approach from the processes used by established commercial banks.
Distribution partnerships form an important part of its growth. Iwoca offers finance through relationships with banking and financial technology platforms including Monzo, Starling, and Tide, connecting lending services with businesses already using those providers.
The company has also expanded beyond conventional lending. Its products include iwocaPay, which supports business-to-business payment terms, and Credit Compass, which helps smaller firms understand their credit position. A business credit card was added in September, extending its services into day-to-day spending and expense management.
Further development includes services related to business acquisitions and insurance, creating opportunities to work with customers beyond their immediate borrowing requirements.
These additional products rely on existing relationships with small businesses and the company’s experience of assessing their financial circumstances. They also create new commercial requirements involving product development, customer support, and regulatory compliance.
Rieche has maintained that providing liquidity to existing investors would not change iwoca’s operating strategy. The company continues to pursue lending growth and additional financial services while its shareholders consider their options.
With no transaction structure or timetable confirmed, the immediate development is the prospect of a shareholder liquidity event rather than an agreed change of ownership. Iwoca’s increased revenue and lending volumes provide the financial backdrop to those discussions.
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