equity funding

May
31

FlexiGroup now funding Kikka’s business loans

FlexiGroup will become the sole funder of Kikka Capital’s business loans as emerging fintech players continue to reshape Australia’s shadow credit markets. FlexiGroup told the Australian Securities Exchange on Monday it had invested $2 million of equity into Perth-based Kikka Capital and provided it with a funding line. FlexiGroup will also use a “white label” version of Kikka’s platform to trial unsecured lending as a complementary offering to its secured asset financing operations. The deal comes less than a week after RateSetter Australia said it would start matching retail investors with business loans over its peer-to-peer platform. Meanwhile, loans by Moula are being funded by low doc lender Liberty Financial, […]

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SocietyOne shifts from edgy start-up to $100m lender

The nation’s biggest peer-to-peer lender, SocietyOne, is growing up fast, and not in the same way as its renegade US cousin Lending Club. An ASIC search has revealed the stranglehold of the so-called media consortium (News Corp, Kerry Stokes and James Packer’s media-free Consolidated Press Holdings) over SocOne after the recent $25 million Series C capital raising. The consortium, through its vehicle S. One Holding, holds a commanding 37 per cent stake, with the News and Stokes interests believed to be dominant in the S. One Holding structure. Not only that, but Westpac’s in-house venture capital fund, Reinventure, speaks for a further 17 per cent of SocOne. Put the two […]

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P2P lender SocietyOne eyes growth in market share

SocietyOne, the nation’s biggest marketplace lender, has forecast it will be cash-flow positive within two years, confirming it had raised an extra $25 million to support its growth plans. Completion of the Series C raising, revealed by The Australian last month, came as new chief executive Jason Yetton committed to a five-year goal to build a 2-3 per cent share of the $105 billion consumer finance market. “The opportunities that lie ahead of us are immense,” said Mr Yetton, a former senior Westpac executive. SocOne’s raising had a number of notable features, including a powerful consortium of billionaire shareholders taking a tighter grip on the company. Mr Yetton said Kerry […]

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Apr
22

Focused fintechs get the nod from Silicon Valley

Silicon Valley once threw money at start-ups that aimed to disrupt broad swaths of finance. Now it is rewarding those that have sharpened their focus. While overall venture funding into lending start-ups is slowing, some platforms still are raising money by taking aim at narrower or less-traditional borrowing niches than the first generation of financial-technology firms. Faced with a glut of online lenders and cooling interest from investors in some loans, a newer crop of fintech start-ups is focusing on areas including loans for real-estate projects, people with poor credit ratings, car buyers and, at the extreme, people getting married. Venture funding for US lending start-ups dropped to $US298 million […]

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Feb
29

ANZ boss Shayne Elliott hot for start-up investments as it partners with Honcho

ANZ Banking Group has partnered with Sydney-based Honcho to fast-track customer small business registrations, as new boss Shayne Elliott drives the bank to work more closely with technology start-ups. ANZ’s managing director of corporate and commercial banking, Mark Hand, says ANZ is open to investing equity into fintech start-ups. It could establish a referral relationship with an online business lender, similar to the arrangement Westpac has with Prospa and Commonwealth Bank of Australia has with OnDeck. After Mr Elliott said he wanted his legacy to be defined by digital banking and criticised ANZ’s siloed approach to technological innovation in an interview with BOSS magazine earlier this month, Mr Hand said […]

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PromisePay’s a disruptive influence that has learned well

As some of the heat recedes from the bubbly global fintech sector, Melbourne-based payments disrupter PromisePay is among a select group of local start-ups with a rapidly deepening revenue stream, serious global prospects and an embarrassment of funding options. Sometime this year, PromisePay will start taking bids for a second round of funding. One of founder chief executive Simon Lee’s problems is that he can’t accommodate everyone who wants to clamber aboard the PromisePay bandwagon, which is why a $10 million cash-grab is likely to be upgraded to $30m-$40m. That way, PromisePay can flaunt its balance sheet to customers generally concerned about trust and stability, and lock in adequate funding […]

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Feb
24

MoneyMe gets $30m capital raise

Consumer fintech firm, MoneyMe, has announced a $30 million capital raise from an ultra-high net worth Australian family office, which has branched out into fintech after investing mostly in large scale property on the eastern seaboard. The capital raise includes both debt and equity, and will fund the launch of a series of niche financial products aimed at millennial throughout 2016. MoneyMe chief executive, Clayton Howes, said the millennial market was important for fintech as they were inclined to spend big on lifestyle and convenience, and were willing to pay a premium for it. “Fintechs with the ability to create niche products that are delivered in a tailored way that […]

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Feb
03

Global fintech giant Spotcap secures $50 million investment as it looks to expand presence in Australia

Global online lending platform Spotcap has closed a $50 million funding round and will be using some of the capital injection to grow its operations in Australia. Spotcap’s third funding round was led by international private equity firm Finstar Financial Group and brings the fintech startup’s total funds raised to more than $80 million. The online lender opened an office in Sydney in May last year, and managing director of Spotcap Australia Lachlan Heussler says the startup has been expanding rapidly in Australia. “Our growth has exceeded our internal expectations,” Heussler tells StartupSmart. “The month-on-month growth has been extremely high, to the point that January was a record month for […]

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