Fintech lender Spotcap continues global expansion with New Zealand deal
The online business lender has partnered with NZX-listed Heartland Bank as well as raising $20 million.
Spotcap, an online business lender based in Europe, has today announced a partnership with NZX-listed New Zealand Bank Heartland, with the bank also providing $20 million funding to Spotcap's Australian operations. This new partnership coincides with Spotcap's official launch in New Zealand.
Today's announcement follows a successful year for Spotcap, which provides unsecured credit lines and business loans of up to $250,000. In May, Spotcap announced it had funded $11 million in loans in its first year, with this number growing to $70 million at the end of its second year, and now $90 million at December 2016.
The then two-year-old company also announced its expansion into the UK in November 2016.
The funding from NZ-based Heartland Bank will allow Spotcap to accelerate the company's growth in Australia while entering the New Zealand market.
“We are excited to have Heartland support our local operations through this investment, and coupled with the progression into the New Zealand market, it puts further focus on our region’s potential to become global leaders in the fintech space," said Spotcap CEO Lachlan Heussler.
Investment in fintech has increased globally from AUD$1.8 billion to AUD$24 billion in the last five years, and Australia has seen a significant ramp up of interest in and support of the fintech sector. Interestingly, corporate and institution interest, such as demonstrated by Heartland Bank's $20 million investment in Spotcap has also increased globally.
CEO of Heartland Bank Jeff Greenslade said the bank's investment should demonstrate its support of the sector.
“Our partnership with Spotcap further highlights Heartland Bank’s commitment to Fintech and digital banking, in line with both our own internal offerings as well as our investments in the sector. We are delighted to gain further exposure to online SME lending and look forward to working with Spotcap to grow its Australian operations. ”
Picture: Lachlan Heussler, Spotcap CEO