Australian fintech funding round-up: July 2019
Australian fintech investment is subdued in H1'19, according to KPMG.
Investment in the Australian fintech sector dropped more than 50% in the first half of 2019 compared to the corresponding period in 2018, according to KPMG's Pulse of Fintech report. Investment dropped from $223 million in the first half of 2018 to US$101.1 million for H1'19. However, KPMG Australia partner and head of fintech Dan Teper said the market has not stopped and is readying for future growth.
"The dip in fintech investment in Australia is more of a pause, with major activity imminent for the second half of the year," Teper said. "Beside VC investment in fintech startups, there is also the possibility of future listing and M&A activity, following the success of fintech IPOs such as Prospa and Afterpay. Their experience could encourage other fintech companies to consider IPOs."
For fintechs that have received investment and funding in July 2019, here is the round-up.
Buy now pay later provider Payright completed a $27 million Series D funding round with a mix of debt and equity funding. The round was oversubscribed and brings its total capital raised to over $55 million.
Operating in the increasingly competitive buy now pay later market, Payright offers no-interest payment plans for purchases up to $20,000. The company has grown quickly, starting with a team of 3 that has quickly grown to over 40. It says it has also nearly doubled its revenue quarter on quarter over the last 18 months. Over the next year, it plans its first international expansion to New Zealand.
Business challenger bank Judo has raised $400 million in what is the largest individual private funding round by an Australian startup. The business bank is no stranger to large funding rounds, having raised $140 million in August 2018 followed by an additional $350 million debt facility from Credit Suisse in December 2018.
The small business bank launched in April 2018 and received a full banking licence from the Australian Prudential Regulatory Authority (APRA) in April 2019. According to the Sydney Morning Herald, Judo is on track to lend more than $1 billion to Australian businesses by the end of the calendar year.
Brighte, a buy now pay later platform for solar and green products for homeowners, has secured a $130 million funding facility with help from NAB. The facility is a $130 million asset-backed securitisation warehouse, arranged by NAB, where the bank provided $80 million as the senior funder. NAB also previously provided Brighte with a $20 million corporate debt facility in May 2018.
Brighte founder and CEO Katherine McConnell said NAB's support has been a key pillar of the company's growth.
"This new funding is a big win for our vendors and their customers because it means we can offer more personal loans and small business payment plans, in addition to our point-of-sale finance products."
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