Iwoca's co-founder and chief executive, Christoph Rieche, has said it is "quite likely" the small-business lender will give liquidity to its venture shareholders. Iwoca last raised money in 2019 and has since grown revenue to £366m and profit to £113m.
Iwoca launched in 2012. It lends between £1,000 and £1m to UK small businesses, and up to €500,000 in Germany. It has raised around £70m in equity, and its backers include Augmentum Fintech and CommerzVentures, Commerzbank's venture arm.
In June, Sky News reported that the company had hired technology investment bank Qatalyst Partners to run a sale process that could value it at more than £1bn.
The cap-table pressure
In an interview with Tech.eu, Rieche set out why a liquidity event is coming. Some shareholders have been invested for 15 years. Because the last round was in 2019, even the most recent investor has held its stake for seven years. "They are all VCs," he said, adding that such investors naturally look for liquidity.
He would not say whether that will mean an outright sale, a stock market listing or a secondary share sale. He also said there are no plans to raise new primary capital because the business is profitable. That means any deal would mostly involve existing shareholders selling their shares, rather than new money going into the company.
The numbers
Iwoca's latest accounts show loan originations rose from £952m to £1.5bn in 2025. Revenue was up 56% at £366m, and profit increased from £59m to £113m.
The company employs more than 700 people across London, Leeds, Berlin and Frankfurt. It has lent to more than 100,000 small businesses and says it wants to reach one million. It also provides loans to customers of Monzo, Starling and Tide through partnership deals.
A cleaned-up shareholder register
One complication on the register has been resolved. London VC Redline Capital, one of Iwoca's longest-standing investors with a stake of around 10%, saw that holding frozen in 2023 under UK sanctions linked to Russian businessman Vladimir Yevtushenkov.
Rieche said the freeze was "quite a big headache". The issue was settled when Tatiana Evtushenkova, Redline's former chief executive, was removed from the UK sanctions list in 2025. The company now has no sanctioned shareholders, which removes a potential obstacle for any buyer or listing.
What's next
Iwoca has recently launched a credit score product, a business credit card and an M&A marketplace. Co-founder James Dear is stepping down this year. Rieche said London is still a "magnet" but that it has "probably got worse" as a fintech hub as taxes have risen and incentives for entrepreneurs have been cut back.
With profit above £100m and a shareholder register free of sanctions, Iwoca is one of the most likely candidates for a large UK fintech exit in 2027. The open question is whether that exit comes through a sale or a secondary share sale.
Original source: Tech.eu — https://tech.eu/2026/10/30/iwoca-ceo-talks-15-years-running-a-fintech-sme-financing-and-possible-sale/
