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.