Fintech startup and alternative loan manager Viola Credit (www.viola-group.com) has closed its latest $700 million fund, the company announced. The fund will provide asset-based lending capital to fintech lenders such as Affirm, which offers installment plans to consumers. Israel-based Viola Credit provides the credit capital for these claims. Another example is Market Finance, a technology-driven SME lender in the UK that needs loan capital to finance loans.
Ruthi Fuhrman, the Founder & General Partner of Viola Credit, Viola Group’s venture lending investment arm, is a veteran of lending in Israel with 25 years of experience in debt, including hi-tech, mezzanine, and distressed lending. She commented: “We’re excited to launch an additional Alternative Lending Income Fund. We’ve deployed over $1.1B to date under this strategy and have partnered with over 15 promising platforms.“
Ido Vigdor, General Partner at Viola Credit, explains: “A radical change is taking place in the area of financial services. These are tech companies backed by VCs but also need financial partners to do so because of their capital-intensive businesses. We are at the intersection of providing credit capital to these new technology-based financial solutions.”
The FinTech sector experienced a boom in 2021, with global FinTech funding reaching $132 billion. The massive digital transformation that is currently taking place has led to the emergence of non-banks and alternative credit companies. In 2021, FinTech lenders issued over $120 billion worth of loans.
Viola Credit will work with FinTech platforms in the US, Western Europe, the UK, Australia, and New Zealand. Viola’s competitors include Victory Park Capital, Atalaya Capital, and Pollen Street Capital in the UK.