SME online lender Capify has raised $14 million in an equity round with the Goldman Sachs Merchant Banking Division continuing to back the fintech through its existing credit facilities.
The investment – Capify’s first, having landed a $135 million credit facility from Goldman Sachs in 2019, marks a return to lending for the fintech after pulling down the shutters in March as the coronavirus pandemic forced thousands of businesses into lockdown.
Capify founder Dave Goldin
Capify founder and CEO David Goldin said he believes demand by SMEs seeking access to unsecured funding will be at unprecedented levels because many businesses either do not qualify for the Coronavirus SME Loan Guarantee Scheme, but need working capital to grow, or they have already accessed the scheme and still need additional capital.
“The fact that we were able to raise $14 million in equity for an online small business lender in the midst of a global pandemic from sophisticated investors with industry experience speaks to Capify’s business model, the unprecedented opportunity ahead of us,” he said.
Goldin said Capify is also seeking partnerships with companies with large SME customer bases to provide financing to their SME customers.
“We are looking for opportunities where we can assist our industry peers who don’t have access to capital during this time by providing funding to their customer base”.
Capify is one of the only online SME lending platforms in the marketplace that can actively provide non-government backed, unsecured business loans at scale to SMEs seeking working capital to grow their business.”
Capify has been operating as an online lender in Australia for more than 12 years alongside its sister company, Capify UK.
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