New non-bank lender TechLend secures $50 million in additional funding
Newly-launched non-bank lender TechLend has secured $50 million in funding from Silicon Valley venture debt and growth credit fund, Partners for Growth, to turbocharge growth in its home loans business.
Partners for Growth (PFG) invests in emerging growth companies across the innovation economy, and has invested more than $450 million in over 60 Australian startups and scale ups to date. PFG has partnered with leading ecommerce furniture and mattress company Koala; small business loan specialist Prospa and rewards platform Cashrewards.
The capital solution comes as TechLend’s products garner strong demand, with its loan book doubling in the last month.
“We’re excited to have Partners for Growth join us in providing a better solution for Australian borrowers. They recognise the magnitude of the problem and also the opportunity that exists in solving it,” TechLend Chief Executive Aaron Bassin said.
“This funding allows TechLend to compete directly with the traditional lenders, offering Australians who would otherwise struggle to access short term loans, a fast and cost-effective solution.”
Bassin said there will be more funding to follow in order to support the continued growth of the business, including debt-funding facilities and a possible IPO.
“The investment is going to provide the necessary runway to TechLend for the next 12-to-18 months, in what will enable us to provide fast bridging loans to homebuyers,” he said.
Partners for Growth Managing Director Jason Georgatos said, “We’re pleased to partner with TechLend on this latest funding round, which provides funding to allow the company to continue its rapid growth, in what is a near-untapped area of the Australian lending market. Techlend’s vision fits well with PFG’s strategy of backing global fintech disruptors.”
TechLend is a technology-led, non-bank lender that is disrupting the mortgage market by offering homebuyers interest-free, paperless, bridging loans with same-day pre-approval, in a revolutionary move that helps reduce the stress from buying and selling properties, at a set-up cost starting from 1.99 per cent for the first 90 days. The product takes the pressure off downsizers and families who often struggle to realise liquidity, due to the archaic, slow systems used by the major banks.
The company received its seed investment from Matt Leibowitz, CEO and Founder of Stake, Australia’s digital brokerage, and pioneer of commission-free trading in Australia.
