One of Britain's fastest-growing small business lenders has hired bankers to launch a sale which is expected to value it at well over £1bn.
Sky News understands that Iwoca, which was founded in 2012 and has provided billions of pounds in loans to SME customers, has engaged the technology-focused investment bank Qatalyst Partners to field talks with potential buyers.
Strategic and financial investors are expected to examine offers for the business, according to City sources.
The prospective sale comes amid a period of rapid growth for Iwoca, which is backed by investors including Augmentum Fintech and Commerzbank's CommerzVentures arm.
Last year, the number of SMEs funded by the business soared from 60,000 to 96,000, with £1.3bn of new loans being issued during the period.
The company was founded by Christoph Rieche, its chief executive, and James Dear.
The auction of Iwoca coincides with the sale of a number of other deals in the SME lending space.
Aldermore, which is owned by the South African group FirstRand, has been put up for sale after becoming ensnared by the motor finance scandal.
Sky News revealed this week that London-listed Metro Bank was among the parties exploring bids for Aldermore.
Iwoca said in a statement: "As a matter of policy we don't comment on strategic or finance plans."
(c) Sky News 2026: Small business lender Iwoca finds Qatalyst for £1bn sale
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