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The SME lender has completed a $15 million capital raise, intended on accelerating the company’s growth.
Along with the capital raise, small- to medium-sized enterprise (SME) lender Lumi also announced that Harel Insurance and Finance Group (Harel) has joined as the lender’s latest investor.
Existing Lumi investors Josh Liberman Investment Group, Arbel, Perennial, and Stellan Capital also participated in the capital raise along with Harel.
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According to Lumi, this is Harel’s very first Australian investment.
The capital raise is set to be “extremely strategic” for the company, allowing it to continue to broaden and institutionalise its register, Lumi stated.
Launched in 2018, Lumi offers Australian SMEs business loans and lines of credit from $5,000 to $500,000 on flexible terms. Successful loan applications are fulfilled within two hours and carry maximum loan terms of 48 months.
The lender utilises its proprietary technology to offer SMEs faster and simpler ways to access working and growth capital.
Lumi chief executive Yanir Yakutiel welcomed Harel and the opportunity to build on the company’s growth.
“I’ve always believed that Lumi was a ‘through the cycle’ lender,” Mr Yakutiel 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.”
Mr Yakutiel added that the capital raise will help the company continue to grow its balance sheet and product offering to further support more Australian SMEs.
Speaking to The Adviser, Mr Yakutiel said the lender is “fully committed to the broker distribution model” and that the volume originated through brokers is expected to grow.
Additionally, the capital raise will allow Lumi to offer more products to brokers, enabling brokers to service their clients “more holistically as opposed to trying to fit square pegs into round holes”.
“We’ll be able to offer them [brokers] a suite of products that they can offer their clients at any point in time,” Mr Yakutiel added.
Managing director at Harel’s technology investment vehicle (Harel Tech), Tomer Goldberg, said the investor firmly believes in “the power of technology to revolutionise the financial landscape” that enables businesses to thrive and contribute to economic development.
“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,” Mr Goldberg added.
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