RateSetter Australia closes $10.5m fundraise

By Ryan Weeks on Monday 25 September 2017

Alternative Lending

RateSetter’s Australian business powers ahead with oversubscribed investment round.

RateSetter’s Australian business powers ahead with oversubscribed investment round.

While its parent company struggles, RateSetter Australia has nabbed another $10.5m in a round led by Five V Capital. The significantly oversubscribed round also featured existing shareholders and other professional investors. The platform's past backers include the RateSetter Group, Carsales Limited, Stratton Finance and others.

Five V Capital is a private equity firm headed up by Adrian Mackenzie, who has joined RateSetter Australia’s board. Vaughn Richtor, who is described as an ING banking veteran, also recently joined the board.

"RateSetter’s management team has taken a very considered approach to growth since launching in 2014, while still driving the business to become the leading peer-to-peer lender in Australia,” said Mackenzie. “This additional capital will help the management team leverage the strong foundations they have laid to date to continue to grow the customer base and accelerate growth.”

RateSetter Australia functions in much the same way as its parent company: a peer-to-peer platform build up around a strong retail base and a provision fund. The company has lent over AUS$160m to date, according to AltFi Data, with over 8,000 investors registered. It was the first Australian platform to be licensed to accept retail money in 2014.

In the UK, RateSetter raised £13m from existing investors Neil Woodford and Artemis in May. However, the platform has since been plagued by negative headlines, stemming from its now-halted wholesale lending activities. These revelations caused the company to withdraw from the Peer-to-Peer Finance Associaton in August, the main industry body for P2P lenders in the UK. 

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