The fintech lender is currently meeting investors both in Australia and abroad as it prepares for its initial public offering, with analysts at Macquarie Capital and UBS estimating that the company could be valued at up to $600 million.
The company, which was founded in 2012, currently has more than $500 million of loans.
It announced that it had appointed a new chairman and two new board members in April. They join existing board members: Avi Eyal from venture fund Entree Capital, James Cameron of venture firm AirTree Ventures, as well as Prospa's co-founders and joint CEOs, Greg Moshal and Beau Bertoli.
According to reports, two of Prospa’s current investors, Entrée Capital and Square Peg, will both participate in the IPO.
The capital raising comes ahead of the SME lending round of hearings at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
From 21 May, the commission will focus on loans to small and medium-sized enterprises, with responsible lending and unfair contract terms coming into focus.
The hearings will largely centre around the conduct of several of the leading banks in respect of their dealings with small and medium enterprises, particularly with regard to providing credit to businesses.
Annie Kane is the editor of Mortgage Business.
As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also a regular contributor to the Mortgage Business Uncut podcast.
Before joining Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.