Thursday, 17 February 2011

Wonga secures £73m funding round

Short term online loans company Wonga - which often attracts criticism from people in the media who always gloss over the fact, when mentioning their APR interest rate, that they only loan money for a month or less (hence APR, a figure mandated by the FSA, is a basically worthless measure) and usually amounts of less than £200 - has attracted a new funding round that generated £73m of investment into the business, which has focused on the ethical end of the short term loans business and attracted much praise from their customers on the way.

Amongst the investors are The Wellcome Trust (the UK's largest charity), and the money will be used to expand their business in the UK and also to ensure that it "has the same engineering talent as Twitter or Facebook" according to founder and chief executive Errol Damelin.