Beforepay raises another $9 million as it looks to IPO

Simon Thomsen - January 13, 2021 < 1 MIN READ

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Beforepay (previously Cheq), the fintech version of a payday lender, has raised $9 million in a pre-IPO round led by Alium Capital.

The company is looking to list this year, having now raised around $17 million. Its previous round was $4 million just two months ago, led by Vocus founder and Airtasker chair James Spenceley.

The startup launched in late 2019 and offers up to $200 in a cash advance against your pay via an app. It charges a 5% fee and automatically deducts the loan from your bank account when you’re next paid.

The venture says it uses machine learning, artificial intelligence and statistical analysis in its loan approval systems. It now has around 200,000 customers.

Following the raise, former Pepper Group CEO Patrick Tuttle and former Clayton Utz lawyer Natasha Davidson are joining the board. Davidson advised ASX-listed logists software company WiseTech on its 2016 before a brief stint as the company’s general counsel.

Simon Thomsen

Simon has been editor of Startup Daily since 2019.

He hosted the Startup Daily show on streaming service ausbiz.com.au from 2020 to 2023.

He was previously associate editor of Business Insider Australia, a national restaurant critic, editor of The Good Food Guide, and newspaper proprietor during a 30-year career in journalism and publishing.

He's also an investor in early stage startups.

Simon chaired the environment committee of industry lobby group Australian Business Ltd's (now NSW Business Chamber) during the Kyoto agreement era, debating cow farts with mining execs.