Australian fintech funding round-up: June 2019
The funding announcements you need to know about in fintech from the past month.
It's been an impressive month in fintech in terms of funding with some notable announcements from a number of financial technology companies. Below are the companies that embarked on capital raising, began trading after their Initial Public Offering (IPO) and received investment.
After small business fintech lender Prospa launched its IPO on 16 May 2019, it began trading on the Australian Stock Exchange (ASX) on 11 June. The company initially offered its shares at $3.78 per share, valuing the company at $610 million. Its successful ASX debut saw its stock price surge 19% to $4.50, closing at $4.46 on the same day.
Prospa offers tech-backed small business loans under $300,000 with funding usually offered in under 24 hours. It launched in Australia in 2012.
Payments startup Verrency has raised $10 million in a Series A funding as it looks ahead to expand into the Singapore and US markets. Verrency enables a range of payment capabilities for fintechs and banks through its API platform and services marketplace. In Australia, it has partnered with local neobank Volt Bank.
This new capital raise brings the total capital raised by the company up to $20 million. It's also planning a Series B raise later in the year.
On 11 June, buy now pay later provider Afterpay entered into a trading halt to raise at least $300 million from institutional shareholders. The placement was to support an accelerated mid-term strategy, which includes fuelling growth in the US and securing its UK launch. On the afternoon of the same day, the company had successfully raised $317.4 million with a $23 per share placement according to Afterpay's ASX announcement. As part of the placement, the Afterpay executive team including CEO Nick Molnar sold $100 million worth of stock.
Afterpay's buy now pay later platform allows customers to make a purchase and pay it off in interest-free instalments. It launched in Australia in 2014 and currently operates in New Zealand, the US and under the name ClearPay in the UK.
AI-powered neobank Douugh has secured a strategic investment from Monex group, a leading financial services company in Japan. According to Douugh, the investment and new partnership will allow Douugh to collaborate in wealth management areas across key markets, including the Asian market. Douugh is currently rolling out its bank account in the US but has secured a number of strategic partner – one of which includes Regional Australia Bank.
Credi, a platform that formalises loans between friends and family, has listed on equity crowdfunding platform Equitise. The "bank of mum and dad" platform has set a target raise of $1 million, which will provide funds for marketing and international expansion.
Credi's platform has been in operation for two years and has been involved in over $100 million worth of transactions with loans ranging from a few hundred to over a million dollars. According to Credi, the average loan is $80,000.