Fintech and small business marketplace lender Bigstone has completed its first round of seed funding rainsing $3m (AUD).
The funding was led by ASX listed private equity and venture capital firm CVC, the founders of Bangkok-based Lighthouse Venture Partners as well as several private investors.
The proceeds from the capital raise will be used to fuel expansion, grow the marketing team and further build out Bigstone’s small business loan market platform.
The p2p lending market is growing rapidly in Australia and is one the largest outside Europe, UK, US and China and is valued at nearly AUD$460m, according to the firm.
Sandy Beard, chief executive officer of CVC says he sees huge potential with a significant opportunity for Bigstone to take advantage of a market that is being disrupted by marketplace lenders.
“We believe Bigstone has created a better intermediation process than those currently available that vastly improves the process for enabling investors to provide loans to borrowers while providing them with vastly improved investment returns he said”
“Bigstone has huge potential as an industry disruptor and we’re looking forward to partnering with Boyd and the team as they look at the next stage of growth,” he added.
Pederson, says the firm had been looking for cash to fund “longer term growth plans with value-add beyond funding.”
“Partnering with the right investors who understand our company, philosophy and vision, who also have an established track record of working with high growth companies and understand both equity and debt investing is extremely important to us. Each investor bring a combination of skills, capability and connections that will accelerate our growth and help us on the road to become the market lender of choice for small business loans,” said Pederson.