Exclusive-Small-business lender Iwoca weighs sale, sources say

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)