Digital finance company MoneyMe has announced the completion of a $30 million capital raising to go towards a series of products directed at Millennials.
In a statement, MoneyMe said the $30 million capital injection, comprising both debt and equity, will fund the launch of a series of financial products targeted at Millennials.
MoneyMe chief executive Clayton Howes said the Millennial market is considerably important for financial organisations, but has continued to be ignored.
“It’s also a market that’s growing tired of being peddled financial products that are delivered en masse and by traditional means – as if each consumer has the same risk profile, lifestyle needs, and capacity to repay,” he said.
“For this reason, fintechs with the ability to create niche products that are delivered in a tailored way that suits the unique needs of the Millennial market will immediately find themselves at an advantage over slower-moving, more traditional finance providers who seem incapable of adapting fast enough to meet the changing demands of this market,” Mr Howes said.
Moreover, Mr Howes said that the capital raising highlights that investors are warming towards investing in fintech start-ups.
“This is great news for innovation in Australia nationwide, as it means we may begin to see Australian fintechs given the type of support and funding opportunities needed to finally compete on a global level.”
The capital raising follows a venture capital injection at MoneyMe’s inception in 2013. It is expected to be the first of three capital raises completed in 2016-17.
MoneyMe provides small loans to Australian consumers.