Broker eyes bigger share with new capital

Lendi raised $25m of new capital in an aim to boost its market share

Broker eyes bigger share with new capital



Online mortgage broker Lendi is gearing up to take a bigger slice of the mortgage broking pie with fresh capital raised last month.

Lendi told Australian Broker that it completed a $25m capital-raising exercise last month and that it was oversubscribed. The exercise was supported by some of Lendi's existing shareholders, large investors, and a number of blue-chip Australian institutions. 

The company is looking to win a bigger share of the market after accounting for about 1% of the mortgage broking business in 2017, the Australian Financial Review reported yesterday (16 Jan).

The finance start-up behind Lendi raised $6m in a capital-raising exercise in 2014 and secured $3.1 million from high net worth investors.

Founders and employees own 40% of Lendi, with other investors holding the rest of its shares. Its big shareholder names include Macquarie Bank, investment manager Bailador, and home loan provider Pepper Group. It also has high-net-worth investors in its list.

Lendi struck a deal with Domain Group last year to launch a joint broking venture. Called Domain Loan Finder, the venture offers a digital solution for Australians looking to secure a home loan. Domain owns 60% of the unit, with Lendi's parent company, Auscred Pty Ltd, holding the remaining 40%.

Lendi began operations in 2013 as an online and phone-based broking business. It compares more than 1,600 products from over 30 lenders. 

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