Shift, a provider of credit and payment platforms for Aussie businesses, announced that it has closed an AUD27 million Series C funding round, led by Sequoia Capital Southeast Asia.
The Series C funding round comes on the heels of a recent AUD140 million increase in Shift’s debt funding capacity and follows a record period of growth for the company, with both funding and revenue exceeding 50% growth in each of the last 3 years.
What does the funding mean for Shift?
“Shift’s strong performance over the past three years speaks to the opportunity in disrupting the highly underserved market of business credit and payments, which has lagged behind the wave of innovation in consumer finance,” said Jamie Osborn, CEO, Shift.
“With this Series C funding round, we are well-positioned to scale our business and unlock growth for our partners and business customers. In Sequoia Capital Southeast Asia, we found a partner with shared values, and a shared appreciation for the opportunity to disrupt an antiquated industry through product and service innovation,” Osborn added.
“We are delighted to have them as part of our team as we move through the next phase of the firm’s growth and deliver finance on demand to help firms better run their businesses.”
What are the investor’s thoughts on Shift?
“While large corporates can access financing based on their income or cash flows and consumers can access financing via credit card or personal loans, many businesses in Australia have to rely on mortgaging their homes or vehicles. More than three trillion dollars is outstanding in credit to businesses and more than 90% of it is backed by real estate or automobile,” commented Rohit Agarwal, Principal, Sequoia Southeast Asia.
“Shift is solving this by providing smart finance solutions – credit anytime, anywhere – to millions of businesses using data and technology. We’re glad to be a part of this journey.”
Shift has provided over AUD2 billion in tailored financial solutions to support the growth aspirations of Aussie businesses since its founding in 2014. These include capital for growth, equipment finance, and trade payment. Shift expects to continue a strong growth trajectory in 2023 as businesses continue to adapt in a changing business climate.
The new raised funds will be used to further enhance Shift’s innovative suite of credit and payment products and deliver even more value to Shift’s network of broker partners, merchants and direct customers. In addition to Sequoia Capital Southeast Asia’s participation, the equity round saw the majority of Shift’s existing shareholders participate.