Wisr reports strong quarterly growth

  • By Elizabeth Fry

Tech lending platform Wisr reported operating revenue of $7.5 million for the March quarter as new loan originations climbed to $97.8 million.  

The first-quarter result compares to operating revenue of $2 million posted for the year ago same period and $5.9 million for the immediately preceding quarter.  

At $97.8 million, loan volume was up 151 percent on the $38.9 million recorded for the third quarter of 2020, and a 17 percent increase on the $83.8 million achieved for the immediately preceding quarter.  

After 19 straight quarters of growth, the company’s loan book stood at $488.3 million as at March 31.  

Wisr is strongly capitalised with $35.5 million in cash and liquid loan assets as at 31 March 2021.   

Shores up balance sheet  

Following its continued strong loan book growth, the fintech strengthened its balance sheet even more in April by executing a term sheet for the issuance of a $21.5 million unsecured corporate loan facility which will include drawdown at Wisr call. Wisr Warehouse loan funding facility was upsized by $100 million to $350 million in the quarter under review. Further Wisr Warehouse expansion to meet loan funding requirements will be announced in the December quarter.  

“This quarter's results continue the trajectory of revenue growth from previous quarters, delivering an exceptional 275 percent growth in revenue compared to this same period last year,” said Wisr chief executive, Anthony Nantes.  

“We’re disrupting the outdated consumer credit model with a superior alternative: a highly automated digital lending experience delivered alongside a customer platform that improves financial wellness.   

“We’ve taken prudent steps to strengthen our balance sheet to provide optionality for our growth trajectory and we’re in prime position to aggressively grow our revenue with significant room to scale towards our medium-term target of a $1billion loan book.”   

Nantes said Wisr planned to aggressively grow market share with an innovative business model that gives it multiple levers for growth in the coming quarters, and beyond.   

“As more borrowers leave the banks, there is a huge opportunity in front of us to grow market share in line with our risk appetite,” he added. “By building a differentiated brand and proprietary Financial Wellness Platform that is a highly valuable asset and our best channel for loan acquisition, we’re delivering a clear competitive advantage that opens up several potential revenue models.”