Judo Bank, an SME challenger bank has finalised its second-round equity raising at $400 million, double the initial target of $200 million, representing the largest individual private funding round by a start-up.
This latest record-breaking equity raise combines follow-on investment from existing shareholders like OPTrust and SPF Investment management and new institutional investors like Bain Capital Credit and Tikehau Capital.
The two rounds are worth a combined $540 million equating to the largest amount of private investment said co-founder and co-chief executive David Hornery.
“The strength of this latest funding round clearly demonstrates the investment community’s understanding of and support for Judo Bank’s truly relationship-focused offering to small and medium-sized businesses – a proposition that has been materially lacking in the market for many years,” he said.
Mr Hornery said the support from investors underpinned Judo Bank’s mission to transform SME lending.
“When combined with the wholesale debt lines secured from Credit Suisse and Goldman Sachs, and the strength of our recently launched deposit business, it adds further and substantial depth to Judo Bank’s provision of funding to Australia’s small and medium-sized businesses.”
Eliot Hastie is a journalist on the wealth titles at Momentum Media.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).