Capify founder tips Australian fintech consolidation, potential acquisitions

Capify founder tips Australian fintech consolidation, potential acquisitions

Australia’s fintech sector is ripe for consolidation says Capify founder and chief executive David Goldin as he sizes up potential acquisitions.

There has been a rash of new entrants in the fintech space in Australia with start-ups and ‘neobanks’ jostling for a share of the $27 billion a year in big four bank profits.

Capify launched in Australia more than 10 years ago with a focus on lending to small businesses with micro-repayment options through daily or weekly repayments but it has seen increased competition recently from the rise of fintechs like Prospa and Zip Co and the launch of SME challenger bank Judo.

Mr Goldin won’t detail Capify’s financials but points to the $135 million credit facility it secured from Goldman Sachs last year as evidence of the privately-owned business’ war chest.

He predicts “you will 100 per cent see mergers and acquisitions in this industry” driven primarily by rising customer acquisition costs.

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Source: Capify founder tips Australian fintech consolidation, potential acquisitions

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