Non-bank lender TechLend has secured $50m funding from Silicon Valley venture debt and growth credit fund, Partners for Growth, to turbocharge growth in its home loans business.
Partners for Growth (PFG) invests in emerging growth companies across the innovation economy, and has invested $450 million in over 60 Australian startups and scale ups to date.
TechLend joins Partners for Growth’s portfolio
Partners for Growth has invested in leading e-commerce furniture and mattress company Koala, small business loan specialist Prospa and rewards platform Cashrewards.
TechLend’s products have strong demand, with its loan book doubling in the last month. “We’re excited to have Partners for Growth join us in providing a better solution.”
“They recognise the magnitude of the problem and also the opportunity that exists in solving it,” TechLend chief executive Aaron Bassin said.
“This funding allows TechLend to compete with the traditional lenders, offering Australians who would otherwise struggle to access short term loans, a fast and cost-effective solution.”
Mr Bassin said there will be more funding to follow in order to support the continued growth of the business, including debt-funding facilities and a possible IPO.
“The investment is going to provide the necessary runway to TechLend for the next 12-to-18 months, in what will enable us to provide fast bridging loans to homebuyers,” he said.
Partners for Growth managing director Jason Georgatos said, “We’re pleased to partner with TechLend on this latest funding round, which provides funding to allow the company to continue its rapid growth, in what is a near-untapped area of the Australian lending market.”
“TechLend’s vision fits well with PFG’s strategy of backing global fintech disruptors.”
TechLend is disrupting the mortgage market
TechLend is a technology-led, non-bank lender that is disrupting the mortgage market by offering homebuyers interest-free, paperless, bridging loans with same-day pre-approval.
This is a revolutionary move that helps reduce the stress from buying and selling properties, at a set-up cost starting from 1.99% for the first 90 days.
The product takes the pressure off downsizers and families who often struggle to realise liquidity, due to the archaic, slow systems used by the major banks.
The fast adoption of open banking, comprehensive credit reporting and accessibility of data allows TechLend to provide customers with real-time outcomes and sophisticated decisions.
The company received its seed investment from Matt Leibowitz, chief executive and founder of Stake, Australia’s digital brokerage, and pioneer of commission-free trading in Australia.
