Silverpeak, the technology investment bank, acted as financial advisor to Auden, a socially responsible consumer finance fintech company headquartered in Manchester, which announced its UK launch today.
Silverpeak co-advised with DC Advisory on a £70m equity investment from DOF IV, a fund managed by M&G investments, alongside expected funding for the first £50m of its loan book from M&G Limited.
Auden aims to focus on the 9m people who rely on credit for everyday essentials but are overcharged and underserved through a lack of choice. It is using its own proprietary tech to offer a range of credit products, priced in the same range as those offered by Community Development Financial Institutions, and has made the necessary investment to operate at scale and drive competition, offering customers a more affordable alternative to ‘high-cost short term’ credit. Auden wants to use tech as a tool for inclusion, to bring customers on a journey to mainstream finance, helping them reduce the price of credit and providing credit tools to boost their financial health and wellbeing.
Auden’s first credit product, available on auden.com, will be short term loans priced at a 195% APR. Auden aims to offer medium-term loans during and a free account into 2022 with a range of data-based services including the ability to track credit score and send real-time reminders to help customers budget. Auden has also created a community of people to learn from and build products and services that will improve financial health and wellbeing, such as a credit health check, and income and benefits maximiser tools.
Silverpeak was appointed due to its extensive technology sector investment credentials. The team understood that the essence of what enabled Auden to deliver its mission at scale was its data analytics and technology platform. For the relevant international investors approached, Auden was positioned as a Fintech multiproduct socially responsible lending platform.
Richard Bartlett, CEO at Auden, said: “Silverpeak worked hard to understand our business, brought a broad knowledge of the range of potential investors to the process. They used this insight to help us to develop and present our proposition effectively. Together we delivered transformational financing to the company.”
Paddy MccGwire, a Managing Partner at Silverpeak added “We are delighted to have been able to advise the Auden team and complete this substantial fundraising for what is a groundbreaking visionary FinTech lending platform. The social mission fills a pressing societal need which aligns with my beliefs, while the investment in the platform and systems ensure that the service and benefits can be delivered at scale.”