Sonovate, a UK-based provider of embedded finance and payment solutions for the contingent workforce, has closed a new £165m securitisation deal with BNP Paribas and M&G Investments.

The securitisation will help the firm boost its capital efficiency and grow its customer base, particularly in the enterprise space. Besides, it will provide more flexibility for export financing, said Sonovate.

M&G Investments, which has been the company’s long term funding partner, invested £15m through the securitisation deal.

Demica, a working capital focussed fintech, was the adviser and reporting agent on the deal and is said to have closely worked with Sonovate as well as BNP Paribas.

BNP Paribas corporate receivables securitisation deputy head Renaud Chalmet said: “This securitisation is designed to support the new world of flexible working. It is scalable, adaptive, and provides stability in the long term.

“We are excited to be working with Sonovate, supporting them as they continue to deliver rapid growth and empower the contingent labour marketplace with innovative solutions.”

Sonovate caters to recruitment businesses, labour marketplaces, and consultancies which engage freelancers and contractors around the world. The company’s global API-driven technology platform is said to remove the burden of managing placement and pay of contract and freelance workers.

The London-based firm has been funding organisations since 2014. It is said to have funded over £2.75bn in invoices so far.

Sonovate CEO and co-founder Richard Prime said: “Sonovate’s vision is to be the funding platform for the future of work. As we scale, we will continue to integrate into the wider ecosystem with the aim of constantly adding value in our market.

“Deals such as this one provide us an exceptional level of flexibility, which we can extend to our customers, enabling them to access innovative funding solutions via a state-of-the-art platform.”