Fintech lender raises $8m and banks on Prospa IPO boost

Prospa rival Lumi is banking on a growth spurt when its competitor in the non-bank small business lender market lists on the ASX in coming weeks, saying a new $8 million equity funding round will help it become a major player in the next year.

Founded by Yanir Yakutiel, the former chief executive of another SME lender called Sail, Lumi closed a $31.5 million capital raise (debt and equity) in November last year.

The latest capital injection was led and managed by the Melbourne-based Josh Liberman Investment Group, with participation from unnamed local family offices.

Mr Yakutiel said the company had raised capital again because it needed to take advantage of a market where anti-bank sentiment favoured new players.

“The business is growing phenomenally fast and we’ve exceeded our growth expectation,” he said.

“The outcomes of the Hayne royal commission have been favourable to us as a sector and there’s been increased demand from historically bankable customers.”

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Source: Fintech lender raises $8m and banks on Prospa IPO boost