Indian VC Peak XV doubles down on business credit fintech in $35 million Series D

Indian venture fund Peak XV Partners (formerly Sequoia Capital India) has backed fintech Shift in a $35 million Series D.

The VC previously led Shift’s $27 million C in February 2023 before its rebrand to Peak XV. Several existing shareholders were also part of the Series D equity round.

The decade-0ld Sydney fintech provides offers business credit and payments, ranging from overdrafts and term loans to vehicle and equipment finance, and a trade account. It also rebranded in October 2021, having launched in 2014 as GetCapital.

Shift previously raised $10 million in March 2020. Its previous backers include former Macquarie Capital execs John Prendiville and Michael Carapiet, Pepper cofounder Patrick Tuttle, Singapore family office Alto Partners and fund manager Challenger among 40 investors on the Sydney fintech’s cap table.

Shift competes with the likes of Prospa and Judo Bank, offering small business lending of up to $1 million, depending on business turnover. Its business overdraft, charges interest of 14.95% – 23.95% pa, as well as a 3% establishment fee, for a loan up to 5 years long.

In May Shift completed a $230 million asset-backed securitisation, having supplied more than $3.5 billion in aggregate funding to 25,000 businesses over its decade in business

Founder and CEO Jamie Osborn said the fresh funds are for a push to “become the market-leading provider” of credit and payments to Australian business.

“This includes further investment in our proprietary data models and platforms that deliver better credit decisions and a vastly improved customer experience for Australian businesses and our network of commercial brokers,” he said.

Peak XV MD Rohit Agarwal said business credit continues to be a large and underserved market.

“Shift has emerged as a leader in this segment with its unique underwriting models and customer centric products,” he said.

“With a long-term mindset and focus, Shift has shown outstanding resilience in both its top line and profitability through the tough monetary cycles of the last few years,” said