Mortgage marketplace startup HashChing has announced plans to raise a fresh $6 million to “scale the business” and develop new technology for its platform.
The fundraising round will be executed through Neu.Capital, an online platform that describes itself as an “alternative capital marketplace” for mid-market deals.
“This additional capital will turbocharge our growth, drive more mainstream brand awareness and provide a platform for more innovation and disruption,” said HashChing chief executive Mandeep Sodhi, ranked number 68 in the Business Insider Tech 100.
“Now is the time to double down on our competitive advantage.”
HashChing provides a channel for potential borrowers to access home loan deals that have been pre-negotiated by brokers. The current pool now represents 60 banks and non-bank lenders.
This means interest rates offered through the app are often far lower than the big four banks’ standard offerings, which are currently around 4.5%.
“The smaller banks and non-lenders are becoming more aggressive with their home loan deals, and HashChing makes it easy for customers to access all of these offers from a central location,” said Sodhi.
The chief executive has seen a shift away from the big banks among his customers, saying that the proportion of refinance applications away from the big four stood at 55% last year but that had now increased to 72%.
HashChing claims its monthly settlements have multiplied 20-fold and monthly revenue has grown 12 times since April last year. The startup has admitted it’s not turning a profit yet but is “focused on scaling” before forecasting going into the black middle of next year.
The startup, which started in August 2015, was developed with a boost of $100,000 from the government agency Jobs for NSW. The company scored $1 million in funding from Sapien Ventures last April and in October was named in the “emerging stars” list in the annual Fintech 100.
The board now includes Fold Legal managing director Claire Wivell Plater, former CEO of MFAA Siobhan Hayden, Sapien Ventures executive-in-residence Helen Lorigan and Sapien Ventures founder Victor Jiang.
Earlier this month, HashChing announced a landmark deal with CGU Insurance to deliver customers a 25% discount on a mandatory part of property loan settlement.
Hayden, who is also HashChing’s chief operating officer, said that the company had “really delivered” on its mission to force “much-needed change in the home loans market”.
“Our most recent partnership with CGU Insurance demonstrates the kind of forethought and out-of-the-box thinking that’s needed for a business to thrive in this highly competitive space. This is the first of many collaborations and partnerships that we’ll be doing with other like-minded verticals in the future,” she said.
Neu.Capital director Cyrus Church said HashChing has already attracted interest from the usual venture capitalists but also family offices that could normally not only access high-growth startups.