Judo Bank launches $400m capital raise

Judo Bank has announced the launch of its third round of capital raise, aiming to match the figure it achieved in its second round raise: $400 million.

The lender’s co-founder and co-CEO, David Hornery, said the $400-million capital raised over the next three months would be utilised to fund the neobank’s continuing expansion across Australia.

Mr Hornery highlighted the extent of demand that the neobank received in its second-round capital raise in July (largely from international investors), which doubled its initial target of $200 million.

“The continued support we are seeing from the investment community, including our existing private and institutional shareholders, demonstrates the strength of the ongoing commitment to Judo Bank, and the fundamental belief in our mission to help SMEs access the funding they need, when they need it,” Mr Hornery said. 

“Since becoming a fully licensed bank in April last year, we’ve lent over $1.1 billion to Australian SMEs and taken in more than $1 billion in deposits. 

“This latest funding round will add further depth to our provision of funding, which can only be good news for SMEs seeking funding throughout Australia,” he concluded.

The announcement comes following the news that aggregator FAST has welcomed Judo Bank to its lender panel, enabling its 1,200 broker members to access the bank’s SME loan offerings.

At the time of the announcement, FAST’s head of NSW/ACT and Queensland, Rob Ryan, said the neobank was a “standout when it comes to innovation and being truly agile and customer-focused”.

[Related: Judo Bank touches $1bn in deposits]