Article: Fintech lender Lumi raises $10 Mn in capital funding

Funding & Investment

Fintech lender Lumi raises $10 Mn in capital funding

Sydney-based small business lender Lumi has secured yet another funding within two months, taking total capital raised to $30 Mn.
Fintech lender Lumi raises $10 Mn in capital funding

Sydney-based fintech lender Lumi has raised another $10 Mn in capital funding from existing investors Arbel Fund and Melbourne-based Perennial Partners. 

The funding is the second one within two months for the small-business lender, taking the total capital raise to $30 Mn. Lumi raised $20 Mn in December 2021, which also saw Perennial Partners enter as strategic investors.

“Lumi is a great Australian growth story. We agree with its vision of economic recovery and growth and the need for finance to modernise and match the needs of its customers,” head of private investments at Perennial Partners Brendan Lyons said.

“Since our previous investment in Lumi, only a few months ago, Lumi has grown faster than expected, and we were happy to continue to support its growth We’re looking forward to working with Yanir and his team on the next stage of growth for Lumi as it expands in 2022.”Lumi plans to leverage the funds to scale its ambitious growth plans across particular markets while also enhancing services and growing its technology platform.

Founded in 2018, Lumi’s technology is built to process loan applications within hours to provide small business loans, between $5,000 and $500,000, with three- to 36-month terms to small and medium-sized enterprises (SME).

The outlook for Australian businesses, coming out of lockdowns, is strong while the potential growth in sectors such as CBD hospitality is faster than the business had previously forecast, said Lumi CEO Yanir Yakutiel. 

Yaskuteil strongly believes that Lumi is now truly beyond any ‘start-up’ label or mentality and will be heavily investing into every aspect of its offering to start to challenge the status quo of small business lending across the nation.

“We are seeing work and the high-earners of our society become much less centralised, so there is a ripple effect of more economic activity moving away from the centre of big cities into the periphery,” noted Yakutiel adding, “There will be winners and losers from this process, and we’re confident that Australia’s SMEs will be a big beneficiary in this process…SMEs are often found further out - for the first time in a long time; the money is coming to them.”

The startup has expansion goals across WA, Sydney, Brisbane, and Melbourne, with plans to double its existing headcount of 65 people over the next 12 months.

“We are growing much faster than forecast, which is ultimately why we have raised additional capital so soon after the last round to help fuel this growth. We have always believed it's the investment into our technology platform that will help set us apart, and that strategy continues to be proven effective.”

Read full story

Topics: Funding & Investment, Startups

Did you find this story helpful?

Author

QUICK POLL

How do you envision AI transforming your work?