Online lending firm loses £23m

LOSSES at peer-to-peer lender Ratesetter grew after it ploughed extra cash into an ailing debtor.

The business, which allows savers to invest their money in companies or loan it to individuals, lost £23.3m in the year to March 31 while revenue climbed 38pc to £23.7m. In the previous 12 months, it had racked up losses of £5.3m.

The plunge stems from a decision to rescue advertising firm Adpod, which was backed by Ratesetter investors’ money and ran into serious financial difficulties.

Rather than see savers lose their cash, Ratesetter bought it to ensure it could carry on making loan repayments, which added £13.8m to its pile of losses.

A total of 42,049 Ratesetter investors had lent £714m at the end of the year.