The small business-focused neobank, Judo Bank, raised an additional $ 174 million in capital, making it the third-largest bank lender in the SME sector, in terms of net loan growth.
The new funding includes $ 124 million in equity, including repeated backing from 14 of its top 20 investors.
The remaining $ 50 million is regulatory additional capital from the issuance of Tier 2 bonds, with participation from “a small group of Australian institutional fixed income investors,” CFO Chris Bayliss said in a statement. communicated.
This latest increase brings the total capital raised in judo to $ 1.2 billion and increases its valuation to $ 1.9 billion.
This is a 19% increase in value from the bank’s $ 284 million increase just six months ago.
It also follows a year of strong growth as the COVID-19 pandemic rocked the small business sector.
Judo has seen a 100% increase in its business lending activity since March of last year, with May 2021 being the bank’s biggest month of loan origination since launch.
It is now the third-largest bank lender in the corporate sector in terms of net loan growth. With a $ 3.3 billion loan portfolio and a $ 2.5 billion loan pipeline, it has surpassed three of the Big Four and now sits behind only Commonwealth Bank and Macquarie.
The neobank also generates cash profits, according to a statement, becoming “one of the very few new banks in the world to have achieved profitability within three years of launch,” said co-founder and head of Judo, Joseph Healy. .
The new funding will allow the bank to double that growth, he added, especially to support small businesses as they strive to recover from the COVID-19 pandemic and economic downturn.
“The foundations of judo are now well established and shareholders will benefit as the company continues on its rapid growth path and judo begins to generate its own organic capital,” said Bayliss.
“Executing a Level 2 transaction adds efficiency and diversification to our capital structure and is further validation of our business model. “