View more on these topics

Leaked letter reveals Wonga thought it was worth £15bn

Embattled payday lender Wonga predicted the firm would have been valued at £15bn by 2015 once it had floated on the stock exchange, a leaked letter reveals.

In a bid to stop staff quitting in April 2012, Wonga sent a letter to 10 employees in which it said the firm would be worth £15bn, based on its £375m 2015 earnings forecast, the Guardian reports.

The letter says: “Wonga is growing significantly, and if this growth continues we would hope our future share value (and therefore the future value of share options granted now) to also increase accordingly over the next few years.

“If we continue to achieve this growth, then at a £5.6bn valuation, which would be an x15 P/E multiple to our estimated net earnings.”

Wonga has not floated and remains a private company.

Earlier this month Wonga was forced to take a £35m hit after agreeing to write off loans worth £220m following intervention from the FCA. 

The Guardian also reports Wonga is clearing the balance of even more people in addition to the 375,000 contacted on 10 October.

In July the regulator found the firm had sent letters from non-existent law firms to pressurise borrowers into paying their debts. About 45,000 customers received a total of £2.6m in compensation.



Ian McKenna: US advice firm helps investments Blooom

When Holly Mackay chooses to close her last-ever Platforum conference highlighting a US financial advice service as something that UK organisations should aspire to emulate, it must be something special. I agree with Holly – the company involved was one of the highlights of Finovate New York. Blooom is another example of a bricks-and-mortar-registered investment […]


Phil Wickenden: Advice vs guidance debate doesn’t help consumers

Navel gazing is ok if you swiftly follow it up by hurling a Fozzie bear through the banisters at an unsuspecting cat, parading around with trousers over your shoulders like an urban emperor, having earlier that morning stockpiled goji berries in someone else’s slippers (à la my 16-month-old … and in his defence he only […]


Amps divided over FCA Sipp cap ad judicial review

Amps members are divided over the trade body’s decision to launch a judicial review into the FCA’s handling over raising capital adequacy requirements for Sipp providers. A major provider told Money Marketing it did not agree with Amps’s course of action and is considering refusing to contribute to the cost of the review. A survey […]


Asset allocation: Why Montage is sticking with the US, for now

Montage Portfolio Management managing director and portfolio manager Peter Montague says he still sees value in US markets despite many saying the country’s stocks are now looking overvalued. In June, the Essex-based wealth management firm launched a discretionary fund management service that is set to roll out to the wider adviser market before the end […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Looks ludicrous even at the time it was written, never mind the problems they’ve had since. The £15bn valuation rests on a 40x PE multiple. For a loan shark? The letter (quoted in the Guardian but not above) says “As a high-growth, tech/online business, this is what we would be striving for”. Erm, you’re a loan shark. With a website. Having a website does not make you Amazon or Google. I don’t know at what multiples other loan sharks have sold for, but given the political risks and that the recent FCA intervention has halved their profits, I wouldn’t touch those shares with a bargepole.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm