TechLend, a fintech company, has secured funding from venture debt and growth credit fund Partners for Growth. Partners for Growth has previously supported other Australian start-ups like Prospa, a business lender, and Koala, a furniture company.
Founded by Aaron Bassin, former head of strategy at ASX-listed lender MoneyMe, and Nick Jacobs, director of Sydney-based brokerage Mortgage Works, TechLend recently launched its first product, an interest-free bridging loan that offers same-day pre-approval.
According to the company, its loan book has doubled in the past month since the launch of the product.
Aaron Bassin, co-founder and CEO of TechLend, stated that the new funding would enable the company to compete directly with traditional lenders. TechLend aims to provide an alternative for customers who struggle to access short-term loans.
“This investment will provide TechLend with the necessary resources for the next 12 to 18 months, allowing us to offer fast bridging loans to home buyers,” said Mr. Bassin.
Mr. Bassin previously mentioned that TechLend’s offering is expected to disrupt the current gap in the market for bridging loans. Traditional lenders have been hesitant due to the short time frame and relatively high origination costs associated with these loans.
Additionally, banks tend to claw back commissions from brokers if loans are repaid within 12 months, further contributing to the bias against such loans.
An emerging opportunity lies ahead as more individuals are choosing to relocate to regional areas and embrace remote work. According to Mr. Bassin, there are 1.6 million households planning to downsize in the next five years, yet they lack a viable solution. He believes that the market potential lies in providing downsizing options, relocation services, and maximizing property values.
Managing Director Jason Georgatos from Partners for Growth (PFG) expressed his satisfaction in supporting TechLend on their journey and recognized the untapped potential within the Australian lending market. He stated that TechLend’s vision aligns well with PFG’s strategy of supporting global fintech disruptors.
To kickstart their venture, TechLend secured seed investment from Matt Leibowitz, the CEO and founder of Stake, an investment platform.
