Personal lender MoneyMe (ASX: MME) made a spectacular debut on the ASX on Thursday as the latest fintech to list in 2019.
The Sydney app-based lender raised $45 million in its heavily over-subscribed IPO at $1.25 per share. The float gave the business a market capitalisation of $211.8 million and enterprise value of $175.3 million.
MoneyMe’s listing comes a week after the impressive debut of business payments fintech Tyro last Friday.
MoneyMe enjoyed similar success on its opening day, with its shares ending 38% up at $1.72 when Thursday’s trade closed.
The company, founded in 2013, says its already profitable, with more than $350 million in loans originated in 225,000 loans to 85,000 customers.
2020 revenue is predicted to reach $46 million.
CEO and co-founder, Clayton Howes told Startup Daily he was pleased and proud of the support from investors.
“The capital they have provided will enable help MoneyMe scale up, including international expansion, while playing a leading role in extending credit to consumers,” he said.
“There is a lot space for a young fintech that delivers innovative credit products to a tech-savvy generation, who are not tied to the major banks and want a smart, quick digital solution to satisfy their demand for cash.”
It was a very good day for Howes, who has a nearly 30% stake in the business, now valued at around $88 million.
Coinciding with the float, MoneyMe, released a buy-now-pay-later (BNPL) line of credit called Freestyle, which it’s pitching as a credit card replacement.
The smartphone-based virtual credit account, offered in partnership with EML payments (ASX:EML) can be used anywhere that accepts Mastercard, as well as for tap and pay.
The line of credit of up to $10,000 offers a 35-days interest free component.
Howes said the business is already seeing wide use across online shopping, and even linking to third party accounts like Uber eats and iTunes.
The business uses AI to assess personal loan approvals in 5 minutes.
In September, MoneyMe launched ListReady, a BNPL platform for real estate vendors to postpone up to $25,000 of property marketing costs until settlement. More than 1,000 real estate agents have signed up, the company says.
On Friday, the initial exuberance has faded, with MoneyMe shares down 11% to sit at around $1.53 in lunchtime trade.
The fintech sector still has one more float to squeeze in, with Melbourne BNPL venture Openpay scheduled to hit the ASX on December 16 on the back of a $50 million raise at $1.60 a share.