London-based Buy-to-let P2P Lending Platform Landbay Secures $2.35 million

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Landbay, the secured peer-to-peer lending platform focused on the UK buy-to-let mortgage market, has completed its first institutional funding round. The company has raised £1.4 million from an investment partner introduced by the alternatives investment manager Omni Partners LLP.

Landbay is a peer-to-peer platform: the online exchange that manages the entire lending process, allowing you to lend money across multiple properties in return for an interest payment each month. Peer-to-peer lending is the practice of lending money to unrelated individuals or businesses, “peers”, without going through traditional financial intermediaries like banks.

This raised round of investment will assist with Landbay’s next phase of growth. Both firms will also enter into an online business partnership, which will seek to build on Omni’s own expertise, and that of its affiliates, in the alternative lending market. The news follows last week’s announcement that Landbay had been appointed as the ninth member of the UK Peer to Peer Finance Association (P2PFA), alongside founding members Zopa, Ratesetter and Funding Circle.

The P2PFA is actively involved in representing the sector to the Financial Conduct Authority (FCA). The association requires its members to operate by a strict set of rules in order to promote high standards of conduct and consumer protection beyond those required by the FCA.

John Goodall, co-founder and chief executive of Landbay, says: “Our new investors bring a wealth of experience and scale in the secured lending and mortgage space – it was very important to us that this round was strategic and the synergies that are created by our partnership with Omni will greatly assist our goal of building a £1 billion buy-to-let mortgage book over the next 4 years.”

John Jenkins, from Omni Partners, says: “Omni and its affiliates have built a successful and well- established alternative lending business. We are always looking to identify interesting developments within the alternative lending sector for our investment partners. Landbay is a highly credible player that stands out in a burgeoning market. We liked the clarity of their strategy and the quality and experience that the management team bring to this fast growing space. We are confident in their ability to grow a successful business.”