Non-bank lender Bridgit has secured $7.7 million in its latest funding round as the FinTech company looks to expand its bridging loan product.
Bridgit aims to use the additional capital to enhance its technology, helping Australians gain access to the equity in their homes without having to sell first.
According to Bridgit, large banks were less willing to offer short-term bridging loans for downsizing, sea or tree-changes and to other home buyers who needed to buy before selling their existing homes.
The funding round, which was led by OIF Ventures and Perennial Partners, will be invested in scaling up product capabilities, including ongoing development of Bridgit’s innovative software solution, which leverages property data and assesses risk to provide approvals within the hour.
Last year, the FinTech processed $400 million in loan applications when it traded as TechLend.
Bridgit Chief Executive Aaron Bassin said the latest funding round was oversubscribed, giving the company confidence in what they’re trying to achieve.
“The strong demand from investors in this latest round is a clear vote of confidence moving forward,” Mr Bassin said.
“This funding gives us the ability to build out our team and further develop a successful business culture that’s ready to disrupt the industry.
“Having the support from 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.”
Mr Bassin said Bridgit continued to foster relationships with brokers.
“We’re also continuing to strengthen relationships with our broker partners who have historically struggled to support borrowers in the bridging loan space through traditional lending avenues,” he said.
“We are committed to serving homeowners who want more flexibility to use the equity in their homes for the next stage of their lives.”
OIF Ventures Co-founder and Partner Jerry Stesel said Bridgit solved a clear problem in the current lending market.
“We’re pleased to partner with Bridgit on this latest funding round,” Mr Stesel said.
“They have identified a problem for Australian homebuyers and have developed an elegant and effective solution.
“Bridgit aligns with our strategy of investing in high growth businesses at the forefront of technological innovation.”
Bridgit’s unique offering gives Aussie homeowners the opportunity to buy their dream home by accessing fast liquidity where they would normally be held back by traditional lenders.
Portfolio Manager at Perennial Partners, Ryan Sohn said the lending market was looking for solutions to short-term lending.
“With strong property prices and a growing mortgage debt to GDP ratio, the Australian lending sector is ripe for disruption,” Mr Sohn said.
“We’re pleased to back Bridgit in their mission to provide homeowners a better alternative and look forward to seeing them further innovative and expand in market”.