Australian finance platform Propell Holdings (ASX: PHL) delivered a record May after growing its customer base and lending to record levels. Last month, Propell passed 2,000 customers on its platform, a 20.1% increase in Q3 and a massive 428% increase from May 2021. Also, in terms of its lending records, the company increased by 34% in April, with a 17% rise from March. This makes the platform’s lending have a total origination of over $1.2 million.
The company is now set for another record quarter, and it expects to deliver its sixth consecutive quarter of more than 30% QoQ growth. Propell’s strong growth was further boosted by its newly launched credit line, Business Loans. Business Loans gives a fixed dollar amount over a fixed term that can be used for specific business purposes like buying assets or equipment. Propell’s customers can now access capital to operate and grow their business as there are now multiple choices that they can pick from with the latest addition of Business Loans.
The Business Loan product will initially be launched as an unsecured product, but as time goes on, the company will add a secured product, collateralized with an asset. The launch of the Business Loan product was a key factor responsible for the rapid growth of the FinTech platform as it enables SMEs to access financial products that they need for their operation and development.
Propell also surpassed its IPO commitment by a good nine months ahead of estimate. The platform’s average loan size increased to $20,000. This is a whopping 20% month-on-month increase and a 48% increase in Q3. Existing shareholders can now also enjoy an “Entitlement Offer” where they can raise up to $2.22 million via a 1:2.5 non-renounceable at $0.058 per share. The funds raised from this offer to shareholders will be used to drive organic growth and increase the company’s lending facility.
Propell’s CEO, Michael Davidson, will hold a live interactive investor briefing on Monday 6 June at 1 pm (AEST) to discuss the company’s growth.
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