Sonovate, a provider of on-demand business finance and technology solutions to the global contract workforce sector, funded a record £55m in March – cementing its status as one of the UK’s most established and scalable fintechs.
The achievement capped a year of growth for the Cardiff and London-based disruptor, during which it provided more than £500m of funding to recruitment businesses, online freelance marketplaces and consultancies, helping to keep the contract labour market moving despite the economic shock of the pandemic.
Founded in 2013 by Richard Prime and Damon Chapple, who between them have more than 30 years of leadership and board-level experience in the recruitment sector, Sonovate is led by its philosophy of smarter pay for the new working world.
Working globally with businesses of all sizes, from start-ups to large corporates, it removes uncertainty around the payment of contractors and freelancers – giving its clients confidence that funds are in place and payment deadlines can be met.
During the 12 months from March 2020, Sonovate signed up more than 500 new clients including a record number of £10m-plus turnover businesses, while continuing to support ambitious and growth-focused SMEs around the world.
Sonovate has now provided a total of £1.9bn of on-demand funding, enabling more than 3,000 businesses in 40 countries to grow and ensuring 25,000 independent workers get paid in full and on time.
Sonovate co-founder and co-CEO Richard Prime said: “In troubled times, Sonovate stood firm in our belief in the contingent labour market, providing much-needed certainty around payment to both contractors and the businesses that engage them.
“The pandemic has accelerated a growing trend towards independent, borderless working – putting pressure on businesses that engage freelancers, contractors and other contingent workers to guarantee enterprise-scale payments and have robust back-office software in place.
“Having earned our reputation and built a strong track record since 2013, Sonovate is perfectly positioned to capitalise on these very current trends.”
Sonovate co-founder and co-CEO Damon Chapple added: “We see it as our mission to remove barriers to growth – giving any company that utilises contingent workers the security, certainty and flexibility they need to achieve scale.
“It’s a mission we’re more passionate about than ever as we enter the next stage of our own growth journey, by bringing new products to market and enhancing and expanding our proposition even further.”
Sonovate employs more than 100 people, including a team of developers behind its market-leading tech and API ecosystem.
In 2019 the company secured £110m debt and equity finance, led by investment house M&G and tech entrepreneurs Michael and Xochi Birch.
This followed the £10m it secured in debt funding from US bank PNC in 2015, and the £20m it raised in Series A and Series B funding rounds in 2016 to grow its product capabilities.