Failed 2018

    Wonga

    Payday lending at 5,853% APR attracts massive regulatory backlash.

    Founded → Closed

    2006 → 2018

    Funding Raised

    $147M

    Industry

    Fintech/Lending

    Country

    UK

    IdeaProof AI Failure Score

    62/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    65
    Burn Rate Risk
    50
    Founder Risk
    40

    Full Analysis

    Wonga offered short-term loans at annualized rates exceeding 5,000%. UK FCA capped interest rates, required affordability checks, and forced Wonga to write off £220M in loans. Collapsed into administration in 2018.

    Could This Failure Have Been Prevented?

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