WLTH enters a funding round and merger deal
Australian digital lending and payments provider WLTH launched a $15 million Series A funding round yesterday and is set to merge with an unnamed partner.
The Brisbane-based fintech says these moves will bring it a step closer to settling its aggressive goal to finance $1.2 billion worth of residential and commercial loans by the end of the 2022 financial year.
WLTH says it has settled more than $50 million in loans to date and has $655 million of approved pipeline volume to settle in the coming months.
The $15 million raise, which builds on WLTH’s $3 million seed raise in July this year, is due to be completed by December 2021. It will support the merger deal, which WLTH founders say will be the first of many.
WLTH hasn’t disclosed the name of its merger partner but describes it as an established eight-year-old Australian payments platform credited with servicing over 7,000 SME clients and 150,000 payees, and processing over $1 billion in payments volume per annum.
As part of the agreement, WLTH will support the WLTH Pay product, which should be launched in February 2022, with the merger partner’s leading payments technology infrastructure. This will enable WLTH’s customers to access the product via one, simple platform ecosystem.
Brodie Haupt, CEO and co-founder of WLTH, says the Series A funding round and the agreed corporate merger will help fast track the WLTH product roadmap and support the company’s goals with a launchpad to enter other territories.
“The merger and raise indicate the maturing of the WLTH brand and signal the next iteration of our growth journey,” he says.
“This deal is the beginning of a growth campaign for WLTH, which will involve further M&A activities, and venture capital partnerships. We are already in the process of closing a large deal which will significantly increase WLTH’s distribution and client base by mid-2022.”
Haupt says WLTH will use some of the funds from the Series A round to invest in its growth strategies and distribution efforts by launching its loan product to the broker market.
The aim is to have over 1,000 brokers writing WLTH loans by the end of the current financial year, he says.
He says 2021 has been a colossal year for WLTH. It launched its flagship Lending Loop loans and a state-of-the-art broker portal, through which brokers can support the onboarding, lodging and settling WLTH loans for customers. It also made a string of new hires, growing the team by 120 per cent since November last year.