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Prospa (company)
Australian financial technology company From Wikipedia, the free encyclopedia
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Prospa is an Australian financial technology company specializing in online lending services for small and medium-sized enterprises (SMEs). It is based in Sydney, New South Wales and has operations in Australia and New Zealand.[1]
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History
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Prospa was founded in 2012 by Beau Bertoli and Greg Moshal.[2] It was founded in response to the cash flow difficulties that small and medium-sized enterprises (SMEs) in Australia face in securing bank financing.[2][3]
In 2017, Prospa raised A$25 million from AirTree in a funding round that valued Prospa at A$235 million.[2]
In 2018, Prospa was listed on the Australian Securities Exchange, raising A$110 million in the initial public offering.[4][5][6] The IPO was initially delayed just 15 minutes before it was supposed to open, and later described as "bizarre".[4] The delay was triggered after issues regarding the fairness of their contracts were identified by regulators.[6] A year later, in 2019, Prospa was launched in New Zealand.[7]
In early 2024, Prospa acquired the loan portfolio from Zip Business, with a transaction valued at approximately $15.6 million. This move encompasses all remaining performing Australian commercial loans from Zip, which amount to approximately $18.4 million and were distributed among around 370 small businesses.[8]
In 2024, Salter Brothers Tech Fund led the consortium to take Prospa private and acquired a minority stake in Prospa for $74 million.[9] It was taken private at just A$0.45 per share, considerably lower than the A$3.78 it had sold for when it first went public.[4]
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Operations
Prospa is active in Australia and New Zealand with headquarters located in Sydney, New South Wales, Australia.[10]
Prospa provides business loans and line of credit to small and medium-sized enterprises (SMEs) in Australia and New Zealand, ranging from A$5,000 to A$500,000 with terms up to five years.[2]
Technology
Prospa's Credit Decision Engine evaluates over 450 data points, primarily from third-party sources, to determine the creditworthiness of applicants.[2][11] The software allows a fast turnaround on loan applications.[2] In 2024, Prospa launched Prospa IQ, a new quoting tool.[12]
References
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