A WA-based fintech has received a $20m funding boost that it will leverage to “fuel expansion into new markets”, as well as boosting other areas of its business as it aims to become a “market leader in online credit”.
Fair Go Finance confirmed the investment on Tuesday, naming its backer as global wealth management business Skybound Capital, which currently has $1.5bn in funds under management and provides investments for family offices, private clients, advisors and institutions.
Skybound Capital now holds a majority share of 60% in the fintech, purchased from Fair Go’s parent company, the Frankfurt-listed MyBucks S.A..
Bringing strategic benefits for both parties, Skybound intends for its latest investment to increase its exposure in Australia. Meanwhile, Fair Go Finance is looking to fuel expansion into new markets, build on its existing innovations in technology and continue to evolve the company in a competitive market, according to CEO Paul Walshe.
Walshe also said the funds would support quicker pursuit of “new avenues of finance technology and growth opportunities”.
“As a company we have a vision to be a market leader in online credit and this investment will assist in making that achievable,” he said.
“Over the last five years, the team has worked incredibly hard to build a reputation for responsible lending, a technical foundation and significant data assets to support our growth plans. This investment will see us targeting new markets and diversifying our products as opportunities arise,” he added.
In 2018, the fintech doubled the size of its business in two months after acquiring the Australian operations of CapFin Money, previously known as Spot Loans.
The acquisition created one of the largest non-bank personal loan lenders in the Australian small loan market.
Jeremy Thorpe, MD and CEO of Skybound Capital Australia – and previously a long-serving director at Fair Go Finance – said this investment builds on the firm’s “understanding of the Australian consumer credit market”.
“Fair Go Finance shares our ideologies and values to empower customers. They are focused on developing innovative financial technology that will provide simple, transparent and fast access to online credit products and services,” he said.
