AAA VPC buys control of Borro

VPC buys control of Borro

Investment firm Victory Park Capital (VPC) has paid an undisclosed amount for a majority stake in Borro, a UK-based online pawnbroker backed by e-commerce group Rocket Internet.

Founded in 2008, Borro operates an online platform that lends money to affluent consumers using luxury assets such as cars, gold and jewellery as collateral.

The company had previously raised about $170m in debt and equity financing, including a $19.5m series E round co-led by Rocket Internet and equity crowdfunding platform OurCrowd in early 2015.

VPC provided a $112m credit facility to Borro in 2014 and it is now supplying working capital together with strategic and operational support. The deal comes four months after Borro founder Paul Aitken stepped down as chief executive of the company.

Borro has not disclosed whether any of its shareholders, which also include Ribbit Capital, Canaan Partners, Eden Ventures, Augmentum Capital, RockBridge Capital Partners and Global Founders Fund, exited through the transaction.

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