Sydney based small business online lender Prospa has raised AU$25m in Series B funding led by AirTree Ventures. The funds will be used for investment in product expansion and distribution, as well as talent acquisition.
Whereas traditionally small businesses would have to fill out complex paperwork for what could still be a negative outcome, Prospa claims that it can approve loans of up to AU$250,000 within 24 hours by processing the applicant's data, and has a 90 percent approval rate. Prospa, whose debt funders include the Carlyle Group and Ironbridge Capital, has also surpassed AU$250 million in total loans to small businesses and secured strategic distribution partnerships with Westpac Banking Group, Reckon, and Mortgage Choice. Other online lenders in Australia include Moula, Spotcap, ThinCats, and DirectMoney, though Prospa claims to be the market leader.