UK Fintech Lenkie Secures £49 Million Series A to Expand Transaction-Based SME Financing

Lenkie, a UK-based fintech startup focused on transforming access to financing for small and medium-sized enterprises (SMEs), has announced a £49 million Series A funding round. The round combines £4 million in equity and a £45 million debt facility, backed by a US private credit fund specializing in supporting lenders globally.

This announcement comes at a crucial time when UK SMEs face a £22 billion funding gap, as traditional banks continue to pull back from business lending. Lenkie’s transaction-based financing model aims to address this gap by enabling faster, more flexible access to capital — precisely when businesses need it.

What Sets Lenkie Apart

Unlike traditional business loans that rely heavily on lengthy credit checks, rigid repayment schedules, and outdated risk assessments, Lenkie takes a more dynamic approach to SME financing. The fintech platform offers payables financing, directly paying suppliers on behalf of SMEs at the beginning of a transaction.

This method is particularly useful for businesses that need to secure stock, pay subcontractors, or acquire essential equipment before they can generate revenue from sales. By removing the upfront financial strain, Lenkie helps businesses unlock growth opportunities without delays caused by cash flow constraints.

Key Differentiators

• Transaction-based funding: Payments are tied directly to business transactions, ensuring funds are used for specific, growth-driving purposes.
• Supplier-direct payments: Funds go straight to suppliers, avoiding misuse and ensuring critical resources are secured.
• Real-time data underwriting: Lenkie’s proprietary technology evaluates real-time business performance, enabling faster and more accurate credit decisions.
• Global supplier network: To date, Lenkie has funded over £70 million in payments to 2,000 suppliers across 40 countries.

The Urgent Need for SME Financing Innovation

The UK’s SME sector drives approximately 60% of employment and contributes 50% of GDP, yet many small businesses struggle to access financing through traditional banks. This gap has widened in recent years, with regulatory changes, rising interest rates, and tighter credit controls limiting access to working capital.

According to multiple reports, including data from the British Business Bank, UK SMEs face a combined £22 billion funding shortfall. In response, alternative lenders and fintech platforms like Lenkie are stepping in with more tailored, flexible funding solutions.

Why Payables Financing Matters

For many growing businesses, cash flow challenges aren’t simply about survival — they actively block growth. Whether it’s restocking inventory, hiring subcontractors for larger projects, or investing in equipment to meet increased demand, many SMEs must pay upfront to unlock future revenue.

Lenkie’s model addresses this pain point by aligning financing directly with these real-world needs. By paying suppliers upfront, Lenkie allows businesses to focus on operations and growth, rather than scrambling to secure short-term cash injections.

The Founders’ Vision

Lenkie was founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe. Jeyakumar, a former Citigroup credit trader, saw firsthand how real-time data could de-risk lending in emerging markets. He structured over £2 billion in lending across high-risk economies, gaining deep insights into how technology could bridge funding gaps.

Later, while building a venture-backed B2B marketplace connecting small businesses with logistics providers, Jeyakumar repeatedly encountered SMEs unable to scale due to financing bottlenecks. These experiences shaped Lenkie’s core mission: making business financing faster, smarter, and more aligned with how modern SMEs operate.

What the Founders Say

“At its core, all lending is built on a foundation of trust. We’re able to use data and technology to understand the nuances of each business to build that trust in seconds,” said Sanjeev Jeyakumar, CEO and co-founder of Lenkie. “This enables us to provide fast and flexible capital when it’s most impactful. By financing specific transactions, we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow.”

Real-World Impact

The platform’s transaction-based funding model not only offers more flexibility than traditional loans but also ensures financing directly benefits business operations. This reduces the risk of funds being misused or allocated to non-productive areas — a key concern for both lenders and borrowers.

One Lenkie client, Mongas Kids Wear Limited, highlighted how the platform has helped improve supplier relationships and unlock growth.

“At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie’s credit facility has been critical in enabling us to achieve all three,” said Ankit Monga, Mongas Kids Wear Limited.

Addressing Structural SME Financing Challenges

The broader structural shift in SME financing, where banks retreat from smaller business lending, is driving increased interest in alternative finance platforms. With its data-driven approach, seamless digital experience, and embedded financing options, Lenkie positions itself as a natural solution to this evolving need.

Key Benefits of Lenkie’s Model

• Faster approvals through real-time data analysis.
• Direct supplier payments, ensuring funds serve operational needs.
• Flexible funding linked to specific transactions.
• International reach, supporting payments to suppliers in 40 countries.

Looking Ahead: Expansion and Innovation

With the new Series A funding, Lenkie plans to:

• Enhance its underwriting technology to further improve speed and accuracy in funding decisions.
• Expand partnerships with platforms that serve SMEs, embedding financing options directly into their existing workflows.
• Explore new markets, potentially expanding beyond the UK to other underserved regions facing similar SME funding gaps.

As alternative finance models gain traction, Lenkie’s combination of technology-driven underwriting and transaction-based funding could serve as a blueprint for the future of SME finance — not just in the UK, but globally.