A BTL Mortgage Lending Platform
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | landbay.co.uk |
| Sectors | Finance & Payments Mixed Digital/Non-Digital B2B |
| Company number | 08668507 |
| Incorporation date | 29 Aug 2013 |
Business highlights
- Became profitable on Ebitda basis over in Nov/Dec 2022*
- 2020-2022 Compounded annual revenue growth rate of 64%
- Award winning platform at both Technology & Mortgage awards.
- Doubled BTL lending market share between 1H 2021 & 2H 2022
Learn more about convertible campaigns.
Idea
Introduction
Landbay is a Buy-to Mortgage lending platform. We match institutional investors’ money into BTL mortgages that we originate and manage.
We launched in Spring 2014 as a peer to peer platform. In June 2017 we started deploying institutional capital and in December 2019 we closed down the retail p2p platform to concentrate on institutional investors. We have multiple institutional funders on the platform.
We provide institutional investors access to a flow of whole-loan high quality BTL mortgages that can be securitised or held on balance sheet. Landbay operates a Marketpace model. Landbay does not deploy any of its own balance sheet nor take any credit-risk.
We now have £1.7bn of Landbay originated mortgages under management and have completed just under £2bn of mortgages to date.
We now have the mortgage funding, technology and capacity to grow significantly in this £295bn market.
*based on unaudited management accounts.
Substantial accomplishments to date
We have built a broad funding base with Retail Banks, Investment Banks and Asset Managers. This means that our loans can get funded via securitisation, capital markets or via bank deposits.
We have grown our origination capacity significantly over the last few years - we are now whole of market with most of the major broker networks & clubs partnering with us. We have an experienced Sales Team that covers all of England & Wales that we have hired from leading BTL lenders.
We have won multiple awards including Best BTL Lender at the 2021 & 2022 Mortgage Strategy Awards, Best use of IT for Lending at the Banking Tech Awards 2022 and Best London mid-sized company to work for at the Best Companies Awards 2022.
We have 9,000 registered brokers on our platform - which has doubled over the last 18 months
Monetisation strategy
Landbay charges borrowers a fee at the time of funds being drawn down,
Landbay receives ongoing Loan management fees for mortgages that it manages on behalf of investors.
As our mortgage assets under management grows, we build significant recurring income in the business. We see this as a key benefit of operating in the mortgage market where loan terms are longer than most other forms of loans.
We do not take any direct credit risk nor do we deploy any of our own capital into the mortgages
Use of proceeds
We intend to use the proceeds of this funding round for general working capital purposes as we continue to grow the business. Our expenses are anticipated to break down as follows (approx):
• Technology - 30%.
• Marketing & Brand Development - 25%.
• General Operating Expenses - 40%.
• Working Capital - 5%.
Key Information
Convertible Key Terms
This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
Conversion is triggered by ("Trigger Events"):
An Equity Fundraise – defined as the Company raising bona fide equity investment of at least £3m from one transaction or a series of transactions, in exchange for the company issuing equity shares;
A Change of Control of the company (transfer of more than 50% of the share capital); or
An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
On the occurrence of a Trigger Event, your investment will convert at A 20% discount to Trigger Event share price.
The Longstop Date is 1st September 2023. If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the share price of the Company’s previous round, being £3.44.
The convertible would also convert to equity at a share price of £3.44 in the event of winding up or liquidation of the company.
The convertible will convert into Ordinary shares (presently the Company’s only share class).
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