Sonovate is the UK-based finance and back-office tech provider to recruitment agencies and consultancies. The startup recently secured £110million debt and equity finance, led by M&G Investments, MXB Holdings Inc, Dawn Capital and Rocket Internet SE.
Sonovate is a UK startup challenging tradition invoice finance products being offered by the banks. Sonovate supports businesses working with contingent workers to help them growth to their full potential.
Following the 2008 financial crisis, traditional lending has become increasingly lengthy and uncertain for SMEs. Sonovate makes the process less complex, providing upfront funding against unpaid invoices.
Since its launch in 2012, Sonovate has funded almost £1 billion of invoices for recruitment agencies, consultancies and on-demand vendors.
Richard Prime, Sonovate’s co-CEO, said: “The world of work is changing rapidly with more and more highly skilled individuals deciding to work on a more contingent basis. But businesses working with contract workers, including recruitment agencies and consultancy businesses, must pay their contractors multiple times before receiving payment from their clients, typically 45 to 90 days later. This severely impacts cashflow and poses a huge risk to businesses – Sonovate removes this burden and risk altogether.
“We’re on an incredible journey, consistently doing what the banks say isn’t possible.”
With this fresh investment, Sonovate plans to advance its core product offering and reach into new international markets including Germany, the Netherlands and America. The company will also optimise finance for SME and mid-market businesses.
Josh Bell, General Partner at Dawn Capital, added: “Sonovate continues to provide game changing tech and finance options to the recruitment industry and contingent workspace. As a long-term investor in the company, we know there is huge potential for further growth ahead, particularly in entering new markets. This capital will play a vital role in helping the business to capture these opportunities.”