Digital lending and payments fintech WLTH has today opened a $15 million Series A funding round.
It is also in the process of finalising a merger with an undisclosed payments platform. $3 million of the Series A raise is set to go to the merger partner to finalise this transaction, the company says.
The new fundraising follows WLTH’s $3 million seed round in July and will support its latest M&A with what the company describes as “an established eight-year-old Australian payments platform credited with servicing over 7,000 SME clients and 150,000 payees, and processing in excess of $1 billion in payments volume per annum.”
At the request of the merger partner, its name will not be publicised until the Series A round closes on the 10th of February 2022.
Applications of interest for the funding round close on December 10th of this year, says WLTH.
The business claims that it has already settled more than $50 million worth of loans to date, and has $655 million in approved pipeline volume for the coming months.
According to Brodie Haupt, CEO and co-founder of WLTH, “The merger and raise indicates the maturing of the WLTH brand and signals the next iteration of our growth journey.”
“This deal is the beginning of a growth campaign for WLTH, which will involve further M&A activities, and venture capital partnerships. We are already in the process of closing a large deal which will significantly increase WLTH’s distribution and client base by mid-2022.”
The capital raised is set to support the corporate merger as well as the WLTH Pay product, expected to launch in February of next year. The merger partner will provide the technology infrastructure for this product, allowing customers to access the product via one platform.
WLTH launched its flagship product Lending Loop, a loans and broker portal supporting onboarding, lodging and settling loans earlier this year.
“Through this Series A round, we’re also looking to use some of the funds to invest in our growth strategies, as well as scale our distribution efforts by launching our loan product to the broker market, with the objective of having over 1,000 brokers writing WLTH loans by the end of the current financial year,” said Haupt.