Paging Alanis Morissette
Payday loan provider Wonga has received a £10 million cash injection to save the company from entering insolvency.
Sky News reports that executives at the company, which is one of the biggest short-term money-lenders in the UK, warned its shareholders that it was in danger of becoming insolvent.
Sky sources: Money-lender Wonga has received a £10m emergency cash injection from high-profile technology investors to save it from insolvency
— Sky News Breaking (@SkyNewsBreak) August 4, 2018
The £10 million has come from venture capitalists and technology firms, including Accel Partners and Balderton Capital.
Wonga is also believed to be considering the sale of some of its assets in order to improve cash flow.
Prior to the injection, the company’s valued at around $30m (£23m). Although it had previously eyed a listing on the New York stock exchange, which could have resulted in a valuation of over $1 billion (£769k).
According to Sky, Wonga had been hit with a rising number of compensation payouts on loans made before the introduction of new rules in 2014.
Wonga was formed in 2004, and are one of the most recognizable payday loan companies in the country. They have sponsored several football clubs, including Blackpool, Hearts, and Newcastle – the latter of which caused controversy when Papiss Cisse refused to wear a shirt bearing the company’s logo.
