Growth Market - SME Lending Revolution - Early Growth Capital Raising

Growth Market - SME Lending Revolution - Early Growth Capital Raising
Asset Categories: Securities, Unissued Securities
Sale Type: Asking Price
Price Guide: AUD Capital raise of A$1.5M @ A$1.00 per share
Status: Closed

Summary:

The Company is a FinTech Start-Up offering an online SME lending platform to meet the growing market demand for unsecured SME loans. Through its lending partners, the company offers customised finance solutions with flexible terms, fast turnaround times and competitive payment options. Loans can be approved within 60 seconds, funded within 24hrs and will be made available unsecured.

The company is capital light, as it isn’t directly funding the loans. Rather, it builds the sales pipeline, runs the tech platform and handles the administration and risk assessment. The business is currently partnered with 14 SME lenders, that provide solutions across the full risk spectrum, and is very close to its launch date.

Whilst the company is not currently totally operational, it is dealing with enquiries and some SME loan opportunities. To date, it has processed ~$1m in loans which primarily came from some early testing used to validate the business model.

The management team is capable and experienced, with the CEO being the former CEO of eChoice, the largest on-line mortgage business in Australia.

The company is looking to raise up to $1.5m (pre-money val of $7.5m) primarily for Sales and Marketing, as well as continuing to build on the tech which drives the platform.

Asset Description:

Growth Market is a FinTech Start-Up offering an online SME lending platform to meet the growing market demand for unsecured SME loans

Company

  • The platform helps to provide loans to SME’s without the cumbersome, time consuming process required by current banking alternatives.
  • It uses a sophisticated platform and intuitive comparative algorithm, so lenders can make their products available through an experienced direct sales team.
  • Provides lenders with zero-risk and targeted sales growth
  • Offers borrowers better customer service and a wider product offering than traditional sources of SME lending.
  • Loans range from $5K to $250K, do not require security and can be for any purpose.
  • Capital light business: Growth Market doesn’t provide the funding directly for their loans
  • Currently has business relationships with 14 SME lenders (eg Propsa, Capify, Moula).

Process

  • Once an SME applies for a loan, the platform identifies which panel lenders the SME matches with. It also shows which lender offers the most attractive commercial terms.
  • Growth Market handles all the necessary paperwork and uploads the information into the chosen lenders portal.
  • Growth Market helps to finalise the funding, which generally occurs within 24hrs of the approval.
  • Once the loan is finalised, and Growth Market collects the commission, all collections are handled by the Lender. Commission is currently 3.33% of the notional value of every loan. 

Market

  • Big banks have largely vacated the SME lending market, with the only products available typically requiring multiple levels of security.
  • Currently over 2m small business in Australia (Source: ABS 8165)
  • $14.3bn in new business loans written across Australia in 2015 with a value <$100k (Source: RBA)
  • 260% increase in SME awareness of online lending options in past 12 months (Source: AustralianBroker, 2017)

Key Executives:

  • Mark Darras (Chairman): experienced lawyer and company director; Chairman of NSW Government's Advisory Board for Strategic Release; previous Board Director for Australia Post, John Holland Engineering, Open Markets, Force Commodities.
  • Michael Peters (CEO): 25+ years in senior roles in financial services; Former CEO of eChoice (largest on-line mortgage business in Australia); former Head of Sales & Distribution for HSBC; Former CEO of NRMA Building Society.
  • Andrew Doquile (CFO): highly successful financial planner, accountant and financier.
  • Greg Conroy (CTO): product and IT innovator with 30+ years in fintech. Greg holds seven patents, primarily fintech software related.

Offer:

  • A$1.5M early growth round (pre-money EV A$7.5M)
  • Use of Funds: primarily for Sales and Marketing, as well as continuing to build on the tech which drives the platform.

 


 

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