RateSetter Australia toasts A$10.5m fundraising
A CAPITAL raising worth A$10.5m (£6.18m) has been completed by RateSetter Australia.
The investment round into RateSetter, which is now the largest peer-to-peer lender in Australia, was led by Five V Capital, with support from existing shareholders and other professional investors.
Five V Capital is a private equity firm, led by partner Adrian Mackenzie, a former head of operations at CVC Capital Partners. As a result of the deal, Mackenzie will join RateSetter’s board, which recently saw ING banking industry veteran Vaughn Richtor join its ranks.
Read more: Not just avocado toast! Younger Oz investors flocking to RateSetter
There are now more than 8,000 investors registered on the RateSetter Australia platform, with more than 1,000 loans funded in August, totaling around £7m.
“There was very strong demand from the Australian investment community, and we are delighted to welcome Five V Capital as a significant shareholder. We will use the capital raised to drive the company to profitability and accelerate our expansion plans,” said Daniel Foggo, chief executive officer at RateSetter Australia.
“Banks continue to deliver record profits at a time when bank term deposit rates are falling and consumer confidence in the system is dwindling. We are seeking to build an alternative to the bank model, which offers investors and borrowers a better, technology-led alternative.”
Read more: RateSetter Australia launches green loan marketplace
Mackenzie pointed to the strength of the RateSetter Australia shareholder base, which includes Carsales, Stratton Finance and RateSetter UK, and argued the firm was “very well placed to take advantage of tectonic shifts in how consumers and small businesses will invest and borrow.”
“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,” he added. “This additional capital will help the management team leverage the strong foundations they have laid to date to continue to grow the customer base and accelerate growth.”