Online lending platform Spotcap has just closed a $50 million funding round and will be using a chunk of that to help grow its presence in Australia.
The company’s third funding round was led by international private equity giant Finstar and brings the total raised to more than $80 million.
Spotcap has had an office in Sydney since May 2015 with 10 staff and this new round will help grow that operation, according to Spotcap’s Australian managing director, Lachlan Heussler.
“It’ll be used to grow our existing operations, improve our product offering and continue to ramp the business up, of which Australia is becoming an increasingly significant part,” he said.
“It is fantastic news for the Australian business and is also a significant investment in Australian FinTech.
“The industry is on the verge of something great and continued investment is needed in order to reach its full potential.”
Heussler added that after raising local awareness for the company, the end game is to become the global leader in short-term and business financing.
Nicholas Jordan, Finstar chief executive, said: “Finstar is pleased to be working in partnership with multinational online MSME lender Spotcap. By acquiring a stake in Spotcap, we are strengthening our position in the digital financial services sector and increasing our reach to new territories. As its shareholder and major strategic partner, Finstar will intensify efforts to further develop Spotcap’s innovative online lending platform and facilitate its global expansion into high-yielding markets.”
Spotcap’s business is based around new technology to help meet small business needs more efficiently than traditional lenders, including using credit scoring technology that directly evaluate real-life business data to provide the results.
When lending, they offer a free line of credit of between $1000 and $250,000 for up to three months.
When a business begins drawing on it, Spotcap charges an upfront fee and then 1% to 1.5% per month, or on an annual basis, 12-18%. However, rates can be higher depending on a risk assessment.