Small business alternative lender, Lumi, has raised $15 million with Harel Insurance and Finance Group signing on as the fintech’s newest investor.
Harel is Israel’s largest insurance group and listed on the Tel Aviv Stock Exchange.
Existing backers, including the private investment arm of Perennial as well as Melbourne’s Josh Liberman Investment Group, Arbel, and Stellan Capital also chipped in.
Founder and CEO Yanir Yakutiel the latest capital injection was “extremely strategic” as it looks to broaden and institutionalise its register.
“I’ve always believed that Lumi was a ‘through the cycle’ lender,” he said.
“Initially, there was concern that alternative lenders could only flourish in either a benign or a stimulatory credit environment, but our recent performance is proof that Lumi’s technology and underwriting capabilities enable it to accurately and profitably underwrite and provide credit throughout the cycle, even in a contractionary and inflationary environment.’
Lumi offers businesses loans and lines of credit of between $5,000 and $500,000 with repayment terms of between three months and four years, with decisions made within two hours.
“We have always been a technology first company and our massive investment in developing market leading proprietary technology has paid off,” Yakutiel said.
“Over the last 24 months we have launched multiple new features and our product pipeline continues to be full. With the capital we have raised today, we can continue to grow our balance sheet and our product offering and support more Aussie SMEs.”
Harel Tech managing director Tomer Goldberg, said Lumi embodies their view that technology will revolutionise the financial landscape.
“Our investment in Lumi is driven by the strong team and the recognition of the tremendous potential that SMBs hold and the need for accessible and efficient financing solutions tailored to their unique requirements,” he said.