Peer-to-peer online lender RateSetter Australia has secured a $10.5 million capital raising round and has doubled its loan levels on 12 months ago.
The $10.5 million investment was led by Five V Capital, which reportedly put in $8.5 million, with support from other new professional investors and existing shareholders. The new money will help the startup boost its headcount from 50 to 80 in the next year, according to the AFR.
RateSetter has in excess of 8,000 investors registered to lend money on its platform, more than 15 times the number of its nearest peer-to-peer competitor, SocietyOne. Last month saw the fintech lend in excess of $12 million through more than 1000 loans, up 114% from the same time last year.
“In August, we became the largest peer-to-peer lender in Australia — both in terms of the number of lenders, and the number and value of loans funded each month,” said RateSetter chief executive Daniel Foggo.
“This investment comes as we pass the significant milestone of $150 million in loans facilitated, an increase of 50% over the last five months.”
The RateSetter brand was established in the UK in 2009 but the Australian arm, created in 2012, is locally owned and operated. Carsales.com.au originally had 20% equity in the Australian company when it made its start in the car loan market.
It was the first peer-to-peer lender to be authorised to accept funds from retail investors, with lenders protected from losing their investment through a “provision fund” that now totals more than $5.7 million.
Five V Capital head Adrian Mackenzie will join the board of RateSetter as a result of the latest investment round.
“RateSetter’s management team has taken a very considered approach to growth since launching in 2014, while still driving the business to become the leading peer-to-peer lender in Australia,” said Mackenzie.
In April, RateSetter Australia won the Excellence in Business Lending and Excellence in Consumer Lending categories at the FinTech Australia awards.
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