Melbourne, 28 July 2021: Credit Suisse-backed SME lending fintech Tradeplus24 has closed an oversubscribed $25 million pre-series B equity raise, led by a European family office with a proven track record of investing in high-growth startups such as Klarna, Delivery Hero, and Lyft.
Existing investors Credit Suisse, SIX Group, and Berliner Volksbank also joined the round, which complements over $200 million in total debt facilities secured across the group and which the group plans to increase to $400 million by the end of 2021.
The capital injection will be used to fund rapid expansion of Tradeplus24’s Australian and European operations, including launching into the UK and the Netherlands later this year, and potential strategic acquisitions planned for later in 2021.
Tradeplus24 was originally targeting $15 million in the equity round, but significant investor confidence in its ability to scale into multiple international markets and achieve rapid growth prompted the material increase to the round, which was also completed in just six weeks.
The strong global demand for Tradeplus24’s unique, invisible, and low-cost line of credit solution is indicative of the global nature of the issue it solves, says Tradeplus24 Australia managing director, Adam Lane.
“There is nowhere in the world where the issues around efficient access to working capital for SMEs have been adequately addressed at scale,” said Mr. Lane. “This is especially true when it comes to loan amounts ranging between $500k to $10 million.
“So the enormous demand for our unique tech-enabled line of credit solution is unsurprising - particularly as the world still comes to terms with the new business landscape created in the wake of the pandemic.
“On top of our global roll out, we have already been investing heavily in growing our Australian team, which has doubled in the last 4 months, and in our technology, including creating bespoke solutions for priority segments. These solutions are focussed on leveraging data to manage risk more effectively and make our customers' lives easier.
“It’s a widely-known fact that incumbents in the invoice finance sector suffer from legacy systems, slow and manual processes, and an acute lack of innovation which forces their customers to waste countless hours on unnecessary and frustrating administration.
“We are determined to provide an alternative that offers much-needed support to growing Aussie businesses, whose growth prospects will be massively amplified through greater access to capital via the simple and user-friendly solution Tradeplus24 provides,” concluded Mr. Lane.
Will Farrant, Managing Director at Credit Suisse Australia said “Following the group's equity investment in Tradeplus24, the Credit Suisse debt capital markets team in Australia have stayed close to the local Tradeplus24 team and we are optimistic in our ability to support them with a debt facility in the coming months as they continue to scale the business.”
The fresh funds follow an oversubscribed Series A of $173 million in debt and equity, completed in 2019, which supported Tradeplus24 through significant growth. The Australian business trebled customer numbers in Q2 2021, spurred by an improving economy and positive customer response to products.
Tradeplus24’s global team also doubled in size during 2021, and is expected to continue to consistently grow as new markets open up and become accessible due to the funding.
Tradeplus24 is anticipating opening a series B in early 2022, where it will consider admitting a strategic local Australian investor to complement its heavyweight international backers such as Credit Suisse, SIX Group, and Berliner Volksbank.
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Tradeplus24 Australia (www.tradeplus24.com.au) is an alternative lending fintech that provides Australian SMEs with a receivables backed line of credit solution to manage cash flow and allow for rapid growth. It is launching help to address the $80 billion credit undersupply to Australian businesses, and offers larger loan sizes than most tech-based alternative lenders can provide: between $500,000 to $3 million. Tradeplus24 has already generated proven results in European markets, including obtaining high-grade investor support from the likes of Credit Suisse, SIX Group, and Berliner Volksbank.