Australian Fintech MoneyMe secures $167m in a new funding facility led by Westpac
Today, Australian fintech MoneyMe Limited (ASX:MME) announced it has secured A$167m through a new funding facility senior funded by Westpac.
It’s the largest round of funding MoneyMe has received to date since it was founded in 2013 and will be used to accelerate the business into its next phase of growth.
The new facility is a significant reduction in funding costs for the business of below 5% p.a. Australian consumers will benefit greatly from this, with cheaper pricing and more affordable options. For the company, this is a significant change in their economics, with their major cost base dropping by more than half.
As well as lowering the product pricing costs for consumers, the funding will allow MoneyMe to accelerate innovation and create a broader product suite.
Speaking of the announcement Clayton Howes, CEO and co-founder of MoneyMe, said, “This announcement marks a huge milestone for the business and will propel MoneyMe into the next phase of growth.
“The step change in funding will enable us to launch new products, attract more customers and build substantial scale.”
“Our innovation led business puts customers first, and now we get to offer better value for our customers. This funding facility and extra capital gives us the momentum to compete for customers with the big four banks and major players in the fast moving BNPL space.”
Clayton concludes, “To have secured this amount of funding in the midst of a global pandemic with COVID-19 is a huge testament to the technology, process and people at MoneyMe. We’re incredibly excited about our next chapter.”
The facility has been initially set-up between Westpac and MoneyMe however further mezzanine funding is expected from The AOFM in October 2020 via the Structured Finance Support Fund (SFSF).*
Last month, MoneyMe announced it had exceeded its prospectus forecast, with a 300% profit increase, in its first End of Year (EPY) results as an ASX listed company.
* subject to completion of legal documentation that is expected to be completed in October 2020.
