Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
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Iwoca, a UK-based small-business lender, is exploring a sale potentially valuing it at over £1 billion. An IPO is also on the table, with discussions still in early stages.
By Amy-Jo Crowley and Charlie Conchie
LONDON (Reuters) -British small-business lender Iwoca, backed by investors including Commerzbank's CommerzVentures and London-listed Augmentum Fintech, is exploring a potential sale, four people familiar with the matter said.
DEAL DETAILS
* Iwoca, short for 'instant working capital', has beensounding out advisers to discuss a sale that could begin earlynext year, the people said. * A sale could value the London-based fintech at more than1 billion pounds ($1.34 billion), two of the people said. B anks and payments companies would be among the likelysuitors, one of the people added. * An initial public offering has also been discussed forthe non-bank lender, another of the sources said. * Discussions are at an early stage and a sale may notmaterialise, the people said, speaking on condition of anonymitybecause the matter is private. * Iwoca and Augmentum Fintech declined to comment.Commerzbank did not respond to a request for comment.CONTEXT
* Around 60% of Britain's small-business lending in 2024came from outside the country's main banks, according to areport from the British Business Bank. * Iwoca generated revenues of 234 million pounds in 2024,up from 143 million pounds in 2023, while pre-tax profits nearlytripled to 59 million pounds, according to Companies Housefilings. * It currently operates in the UK and Germany and has 600staff across offices in London, Leeds, Berlin and Frankfurt.($1 = 0.7451 pounds)
(Amy-Jo Crowley and Charlie Conchie in London. Editing by Anousha Sakoui)
A small-business lender provides financing options specifically designed for small businesses, helping them access capital for various needs such as expansion, equipment purchase, or operational costs.
A potential sale refers to the possibility of selling a business or its assets, which may involve negotiations and discussions with interested buyers.
An initial public offering (IPO) is the process through which a private company offers its shares to the public for the first time, allowing it to raise capital from public investors.
Pre-tax profits are the earnings of a company before taxes are deducted, providing an indication of its profitability before accounting for tax liabilities.
Venture capital is a form of private equity financing that is provided to early-stage, high-potential growth startups in exchange for equity, or ownership stake.
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