London fintech secures £38m equity investment to support SME trade finance

A London headquartered, global fintech business has secured a £38m ($50m) equity investment from investment firm, Centerbridge Partners, LP., at a valuation of $900m.

The equity investment will be used to support marketing, product development and hiring global talent.

Stenn leverages the digital economy and its tech stack to provide quick access to efficient growth capital for global SMEs that are engaged in international trade. The business was founded in 2015 by serial entrepreneur Greg Karpovsky, who has more than 20 years’ experience pioneering a new market in digital trade finance.

SMEs conduct more than a quarter of global trade, yet these businesses have struggled historically to access financing, severely restricting their growth potential.

Stenn is able to provide cross-border capital to SMEs within 48 hours. This capital is provided by some of the largest financial institutions in the world, with Stenn managing allocation of funds on their behalf.

Greg Karpovsky, founder and CEO of Stenn, said: “A lack of access to finance is stunting the growth of SMEs around the world that are engaged in international trade.

“At Stenn, our purpose has always been to level the playing field for global SMEs, helping to plug a multi-trillion-dollar financing gap by connecting these businesses with low-cost institutional capital. Our proprietary platform and data analysis de-risks the process for our banking partners and provides a quick, simple and low-cost solution for SMEs.

“We are excited to be partnering with an investor of Centerbridge’s calibre and vision. Their funding will enable our next chapter of growth, allowing us to capitalise on our first-mover advantage whilst continuing to meet surging customer demand as we scale our team and proposition.”

Jed Hart, co-head of Centerbridge’s European business and senior managing director, commented: “We have been impressed with Stenn’s disruptive approach to addressing the challenges of global trade finance supply and believe that Stenn has a highly scalable proposition.”

Barclays Bank PLC, acting through its investment bank, acted as placement agent in connection with the offering. Latham & Watkins LLP and NautaDutilh acted as Stenn’s legal advisers; Orrick LLP and Loyens & Loeff acted as legal advisers to Centerbridge.