Kiwi peer-to-peer lender Harmoney has raised NZ$47m to fund expansion into the Australian market.
The initial AU$22.9m (NZ$25m) in capital was raised through Australian private equity firm Kirwood capital and a private institutional investor based in New Zealand.
An additional AU$20m (NZ$21.9m) corporate debt facility with an unnamed Australian investment fund brings the total capital to AU$42.9m (NZ$47m), the company stated on Wednesday.
The majority of the investor funds will be put towards Australian expansion and digital innovation, while the corporate debt facility will be used to expand its customer base and debt warehousing programme.
Since its inception in 2014, the company claims to have "originated more than $1.4b in new loans", mainly out of New Zealand.
David Stevens, incoming chief executive officer, said the funding's success is a vote of confidence for the company's business model and vision.
"This investment will allow us to scale up our operations in Australia while maintaining the healthy growth we've sustained in New Zealand, further diversifying our funding options," Stevens said.
Harmoney says the business is profitable and a mix of funding channels have been developed, including warehouse funding.
Kirwood Capital, a strategic investor that focuses on opportunities across consumer and other sectors, will take a seat on Harmoney's board.
Luke Forster, chief executive officer of Kirwood Capital, said that for companies at Harmoney's stage of growth, access to capital is critical.
"Kirwood's investment recognises Harmoney's globally differentiated digital offering and its attractiveness as a high growth and profitable platform," Forster said.
Newshub.
