The series A fund raise includes £12m in equity and £30m in debt lines.
The equity funding, raised from a range of fintech investors including Picus Capital and Global Founders Capital, will allow the business to accelerate its growth plans and invest in technology.
Selina Finance also secured £30m in debt lines that will be used to support more SMEs and, following regulatory approval, consumers across the UK.
The company was founded in 2019 by Andrea Olivari, Hubert Fenwick and Leonard Benning to offer overdraft-style credit facilities up to £1m allowing SMEs and consumers to borrow against the equity tied up in their homes or investment property.
Borrowers can drawdown and repay funds whenever they choose, and pay interest on what is outstanding.
Selina Finance’s credit facilities are secured against property and rates start from 4.95 per cent.
Benning said: “We’re bringing a completely new product to the lending market which, unlike a conventional loan, offers customers real flexibility.
“Our customers can save time and money by only drawing down and repaying when they need to without the need to re-apply, plus the product is feeless and transparent which is what customers have come to expect in the 21st century.”
Technology powers the valuation and underwriting process, so property surveyors or other face-to-face visits are not required.
The new funding will be used to develop the technology further.
Fenwick added: “Homeowners deserve to be able to unlock the value tied up in the home they’ve worked so hard for, both at an affordable price and in a flexible manner.
“We want to help people tap into their real estate wealth whenever they need to borrow funds, by making the whole process, from application to funding, as seamless and as fast as possible.”
Selina Finance works with more than 200 commercial finance and mortgage distribution partners across the UK.