Skybound acquired the 60 per cent share in Fair Go from Frankfurt-listed MyBucks SA, as part of its strategy to grow its exposure to the Australian market.
The wealth group said it selected Fair Go due to it steadfast performance during the last five years.
Paul Walshe, chief executive of Fair Go Finance, declared the $20 million backing will fuel the fintech’s expansion into new markets, as well as build upon its technology and continue to evolve to keep ahead of a competitive market.
“This investment will enable us to pursue new avenues of finance technology and growth opportunities quicker, given Skybound’s access to global capital markets,” Mr Walshe said.
“Over the last five years, the team has worked incredibly hard to build a reputation for responsible lending, a technical foundation and significant data assets to support our growth plans. This investment will see us targeting new markets and diversifying our products as opportunities arise.
“As a company we have a vision to be a market leader in online credit and this investment will assist in making that achievable.”
Jeremy Thorpe, managing director and chief executive of Skybound Capital Australia has also been a director of Fair Go for a number of years.
He said the fintech shares Skybound’s ideologies and values to empower customers.
“They are focused on developing innovative financial technology that will provide simple, transparent and fast access to online credit products and services,” Mr Thorpe said.
“The partnership brings new opportunities for us locally, with investments in debt and equity, and the implementation of a new business strategy leveraging the understanding of the Australian consumer credit market.”
Fair Go was founded in 2008 while Skybound has operated for more than 30 years, reporting around $1.5 billion in funds under management.
“We are thrilled to be working with Paul Walshe and the team at Fair Go Finance and look forward to collaborating to bring new opportunities in the fintech space,” Mr Thorpe said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.