Non-bank lender Bridgit ignored TechLend’s former name and agreed to a $7.7 million raise, with the intention of using the funding to grow its business.
TechLend, a lending fintech founded by former MoneyMe chief strategist Aaron Bassin and Nick Jacobs, director of Sydney-based brokerage firm Mortgage Works, has been renamed Bridgit.
The lender launched in July last year, debuting its interest-free bridging loan that promised same-day pre-approval.
Bridgit has now secured $7.7 million in its latest equity funding round, with plans to increase its product capabilities, including continued development of its software solution that leverages proprietary data and assesses risk. .
The goal is to provide and maintain loan approvals within the hour.
Bridgit chief executive Aaron Bassin said “strong investor demand…is a clear vote of confidence.”
“This funding gives us the opportunity to strengthen our team and further develop a successful company culture that is poised to disrupt the industry,” Bassin said.
“The backing of strategic investors helps us continue to scale our technology across Australia, giving us immense confidence that our product will change the way people finance their next home.”
The lender has processed $400 million in loan applications since it started operating last year.
Mr. Bassin and Mr. Jacobs sought to fill a gap in the market, pointing out that banks are less likely to offer short-term bridging loans to people moving between homes.
The company noted that Adelaide Bank had decided to only provide bridge loans to existing customers.
Additionally, Bridgit has kept brokers in her sights, Bassin added.
“We also continue to build relationships with our brokerage partners who have historically struggled to support bridge loan borrowers through traditional lending avenues,” he said.
The equity funding round was co-led by venture capital firm OIF Ventures and investment firm Perennial Partners.
Perennial Partners portfolio manager Ryan Sohn said: “With high house prices and a rising mortgage debt-to-GDP ratio, the Australian lending industry is ripe for disruption.
“We are thrilled to support Bridgit in her mission to provide owners with a better alternative and we look forward to seeing them continue to innovate and grow in the market.”
TechLend secured $50 million in funding from a Silicon Valley venture capital fund in August last year.
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