Challenger SME bank raises $284m in new funding

by Gerv Tacadena19 Feb 2021

Challenger SME lender Judo Bank has announced the completion of its latest round of capital raise, which amassed $284m from new and existing investors.

The bank was given a shot in the arm by six new investors in its Round 4 capital raise. Some of the new investors joining Juno's backers include UniSuper, Magnetar Capital, and Moore Strategic Ventures.

Over 60% of the funds raised had come from new domestic and international investors. Meanwhile, 70% of its largest existing investors had further contributed in this latest round.

Also read: Judo Bank launches Federal Budget guide for SMEs

David Hornery, co-CEO and co-founder of Judo Bank, said the latest round puts the bank's post-money valuation at more than $1.6bn, representing an increase of 60% over the past seven months.

"Given this raise was completed during some of the most challenging market conditions in a generation, due to COVID-19, we are absolutely delighted with this result," he said.

This latest funding builds on the bank’s third round completed in May 2020. This brings the total amount raised in the last seven months to over $510m.

"One of the most pleasing aspects of this round was the demand shown by new investors both domestically and internationally, with a significant portion of the total equity raised coming from new institutional investors," Hornery said.

Simon Hudson, head of equities at UniSuper, said Judo Bank has the right potential given its robust banking model and commitment to small businesses.

"UniSuper is excited to invest and promote competition in this space, and we believe Judo Bank’s values are very much aligned with our own. As they continue to execute their strategy, we’re very confident this will benefit UniSuper members and all Judo’s stakeholders," he said.

Alan Shaffran, senior portfolio manager and European Head at Magnetar, shared the same sentiments, adding that Judo possesses strong fundamentals and quality leadership.

"Through our investment, we’re proud to support Judo as it continues to execute on its strategic vision and further its reach and impact with the SMEs it serves," he said.