Prospa (company)
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| Company type | Private |
|---|---|
| ASX: PGL | |
| Industry | Financial services |
| Founded | 2012 |
| Founders | Beau Bertoli Greg Moshal |
| Headquarters | , |
Areas served | Australia New Zealand |
Key people | Greg Moshal (CEO) |
| Products | Business loan |
| Website | prospa prospa |
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]
History
[edit]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]
Operations
[edit]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 $5,000 to $1 million with terms up to five years.[2]
Technology
[edit]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
[edit]- ^ Drummond, Shaun (20 November 2015). "Westpac pilots SME lending with fintech Prospa". The Sydney Morning Herald.
- ^ a b c d e f Smyth, Jamie (10 April 2018). "Online lender Prospa challenges Australia's big banks". Financial Times.
- ^ White, Sue (22 July 2016). "Meet the boss: Prospa co-CEO Beau Bertoli". The Sydney Morning Herald.
- ^ a b c Thomson, James (27 February 2024). "Prospa started ASX life with a bang. It's ending with a whimper". Australian Financial Review.
- ^ Eyers, James; Shapiro, Jonathan (7 June 2018). "Prospa float postponed". Australian Financial Review.
- ^ a b Chau, David (8 June 2018). "'Biggest float' of 2018 on hold as regulators investigate potentially unfair loan contracts" – via Abc.net.au.
- ^ Utley, Madison (18 April 2019). "Lender thrives in "underserviced" NZ market".
- ^ "Prospa to acquire Australian business loan portfolio from Zip Business Pty Ltd". FinTech Australia. 6 February 2024.
- ^ Thompson, Sarah; Sood, Kanika; Rapaport, Emma (26 February 2024). "Salter Brothers puts Prospa shareholders out of their misery". Australian Financial Review.
- ^ Parker, Tamsyn (28 February 2025). "Small business lender raises red flag over Govt business finance scheme". NZ Herald.
- ^ Kruger, Colin (14 May 2019). "Prospa looks to navigate market turmoil in second IPO attempt". The Sydney Morning Herald.
- ^ Squires, Ben (30 October 2024). "Prospa unveils new quoting tool for brokers". The Adviser.