Fintech company Amigo is having difficulties raising funds from investors to fuel its return to the lending industry this year.
In a company statement issued on Monday, Amigo said it was yet to find an investor to provide the necessary funds to continue operations, following the end of its multi-year ban from lending by the Financial Conduct Authority (FCA).
“It is disappointing that we have so far been unable to identify the requisite equity backers for the business,” said Danny Malone, chief executive of Amigo.
“However, we are continuing with our efforts to put together an equity investor consortium as expeditiously as possible.”
Amigo was forced to stop lending in 2020 after regulators determined it had acted irresponsibly by providing high-interest loans to financially at-risk customers.
In an interview with , former Amigo CEO Gary Jennison, who stepped down from the company in September 2022, admitted the company acted improperly prior to its ban and promised its comeback would see responsible lending.
“We cut corners and we didn’t do proper affordability checks and quite rightly, we’ve had to put that right,” Jennison told .
“We did a few things wrong but let’s be frank, we’re not going to do that again, there’s a brand-new management team, a brand-new board of directors, and we’re going to get it right this time.”