Fintech Judo Capital has signed a $350 million debt facility with Credit Suisse

  • Digital bank startup Judo Capital has signed a $350 million Credit Suisse debt facility
  • The money will be used to provide further depth to Judo’s lending of small and medium sized enterprises.
  • In August this year, Judo announced that it had raised $140 million of equity.

Fintech Judo Capital, which is seeking a banking licence, announced it has signed a $350 million debt facility agreement with global financial services firm Credit Suisse.

David Hornery, co-founder and co-CEO of Judo, says the Credit Suisse facility will provide further depth to Judo’s funding for Australian small and medium sized enterprises (SMEs).

“Since Judo’s launch earlier this year, demand for our relationship focused SME lending has surged because we actually take the time to understand the strength of the whole business,” he says.

“This is in stark contrast to the one size fits all approach by many of the incumbent banks, which has resulted in a SME funding gap of more than $80 billion.”

In August this year, Judo announced that it had raised $140 million of equity, the second largest fundraising round in Australian pre-revenue startup history.

That raise beat the $US80 million ($A108 million) raised in July by Melbourne-based fintech Airwallex, a cross-border payments company, in a Series B funding round.

Initial investors in Judo include Ironbridge Capital, Canadian pension fund manager OPTrust, Myer Family Investments, the Abu Dhabi Capital Group, and Credit Suisse Asset Management.

Co-founder and Co-CEO of Judo, Joseph Healy, says the support for Judo shown by the local and international investment community represents a new era in banking where trust and relationships once again take primacy.

“At Judo, we’re turning the tables in favour of SMEs, so that they get the service and funding they desperately need and deserve,” he says.

The head of Debt Capital Markets and Asset Finance for Credit Suisse Australia, Will Farrant, says Credit Suisse had a strong record of backing highly credentialed entrepreneurs and clients from the early stages of their existence and then collaborating with them over the long term to finance their growth with a full suite of solutions.

“We have significantly grown our securitisation business focused on entrepreneurial clients over the last few years, and we are looking at financing all stages of a company’s lifecycle, from early stage to maturity and across the capital spectrum,” he says.

“Judo has a high quality management team and a scalable business model. It is very well positioned as a disrupter for traditional SME business lending and our strategy is to back entrepreneurs to help them grow.”

Judo was advised by Ashurst LLP and King and Wood Mallesons.