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Fast-growing ‘finance on demand’ platform provider Shift has today closed a $27 million Series C funding round led by Sequoia Capital Southeast Asia.
The raise follows a $140 million increase in Shift’s debt funding facility, fuelling record growth for the firm that provides credit and payment platforms for Australian business clients.
Sydney-based Shift says it has now provided more than $2 billion in tailored financial solutions to support the growth aspirations of its customers since its founding in 2014, including platforms facilitating capital for growth, equipment finance and trade payment solutions.
The raise, which also saw participation from the majority of the company’s existing shareholders, will facilitate further enhancement of Shift’s suite of credit and payment products.
“Shift’s strong performance over the past three years speaks to the opportunity in disrupting the highly underserved market of business credit and payments, which has lagged behind the wave of innovation in consumer finance,” Shift CEO Jamie Osborn said.
“With this funding, we are well-positioned to scale our business and unlock growth for our partners and business customers. In Sequoia Capital Southeast Asia, we found a partner with shared values, and a shared appreciation for the opportunity to disrupt an antiquated industry through product and service innovation.”
Sequoia Southeast Asia principal Rohit Agarwal said Shift was solving a major pain point for businesses.
“While large corporates can access financing based on their income or cash flows and consumers can access financing via credit card or personal loans, many businesses in Australia have to rely on mortgaging their homes or vehicles,” Agarwal said.
“More than three trillion dollars is outstanding in credit to businesses and more than 90 per cent of it is backed by real estate or automobile.
“Shift is solving this by providing smart finance solutions - credit anytime, anywhere - to millions of businesses using data and technology. We’re glad to be a part of this journey.”
The raise follows a busy year for Shift, which recently launched a new product called Equipment Line, giving businesses access to a revolving credit facility for asset purchases.
In March last year Shift announced the issuance of $150 million in asset-backed securities (ABS), supported by a pool of equipment finance loans to Australian businesses - its inaugural transaction of its type.
At the time, Shift said the transaction validated the quality of its originations using a technology-driven operating model in the under-served business finance market.
“This transaction is an important milestone in the growth of Shift and its funding capabilities,” Osborn said at the time.
“It is a strong result for the business and is indicative of Shift’s intention to become a regular issuer in the Australian securitisation market.”
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