An online mortgage marketplace has issued its first round of shares to raise up to $5million over the next month and a half.
HashChing is using equity crowdfunding space Equitise to raise money by the end of June.
The venture will allow anyone to make an investment in the company, with a minimum investment of $250, worth 200 shares.
The money raised is to help with brand awareness, new technology to help scale the business and enhancing the size and knowledge of the team.
Mandeep Sodhi, CEO of HashChing, said they chose equity crowdfunding as a way of raising money to “provide an opportunity for the HashChing community to officially partner with us”.
He added, “One of the main reasons we chose equity crowdfunding was because we wanted to stay independent. Unlike many other online mortgage platforms which are backed by a lender, we are and will continue to stand separate from the banks. We want our customers to become shareholders in HashChing and help us deliver the simple and effective end-to-end home loan journey that Australia is currently lacking.
“We have some really exciting products in the pipeline and, through crowdfunding, we will be engaging our new shareholders in design thinking and incorporating their feedback before pushing out the new products to market.”
The crowdfunding regime enables publicly unlisted companies with less than $25million in assets and annual revenue to issue shares with the ability to raise up to $5 million in a 12 month period.
HashChing converted to a public unlisted company to take advantage of Australia’s crowd-sourced equity markets, advertising for investors while staying independent of larger financial institutions.
Equitise co-founder Chris Gilbert called HashChing a “fantastic example of a disruptive technology service in the Australian fintech space”.
He added, “This capital raise will be launching at a topical time with the ongoing Royal Commission. The HashChing platform provides Australians with far greater transparency to the mortgage broking industry via its intuitive and transparent online marketplace.”
NAB unveils new digital broker tools
Startup 'bank' aims to be lending alternative
Brokers look to smaller lenders for loans