Propell accesses $7.5m wholesale funding to facilitate finance platform growth
Propell has increased its wholesale funding facility to support lending growth on its platform.
Australian financial services company Propell Holdings (ASX: PHL) has increased its wholesale funding facility to $7.5 million to support the growth of its lending platform.
Following a strong performance over the last two quarters, Altor Capital Management has agreed to increase the current facility by 50% which will help deliver greater capacity for lending volumes.
The increase is dependent on the successful completion of a $2.8 million convertible note raising, which remains subject to shareholder approval this month.
The raising was launched in July and is aimed at helping Propell achieve cashflow breakeven and profitability by the end of the 2023 financial year.
Lending and customer growth
Propell recently reported significant lending book growth on the back of an increased customer base and new finance offerings.
The number of customers using its platform jumped to over 2,150 during the June quarter, representing a quarter-on-quarter increase of more than 30% and an increase of more than 320% on the previous corresponding period.
Lending volumes for the quarter expanded to $3.4 million, representing a growth of 35% quarter-on-quarter and more than 320% on the previous corresponding period, with May and June being the largest lending months on record.
The average loan size reported in June increased to just under $20,000, representing a 40% quarter-on-quarter growth and more than 278% on the previous corresponding period.
Propell said it is in discussions with third-party wholesale lenders to increase funding for the growth of its loan book over the long term.
All-in-one platform
Propell’s all-in-one finance platform targets the nation’s 2.4 million small-to-medium enterprise (SME) owners who may be frustrated with the slow and difficult lending processes and paperwork imposed by traditional banks.
Propell offers lending solutions which are faster to access, easier to use and simpler to manage using a digital-first approach.
The platform is aimed at improving customer cashflow and financial wellbeing by aggregating a range of finance products and services including lending, payments and cashflow forecasting tools.
Extensive customer data is leveraged with an artificial intelligence (AI)-based engine to deliver products in an entirely digital manner.
Propell launched the platform in mid-2020 and is focused on boosting customer numbers and enhancing its product suite.