Credible Raised $50 Million in IPO on Australian Securities Exchange
The San Francisco-based startup Credible raised $50 million (A$66 million) in an initial public offering on the Australian Securities Exchange (ASX). This is a relatively small listing by U.S. standards, but according to data from Bloomberg, it’s the largest technology IPO on the ASX this year. So, it’s big news for Australia.
The IPO valued Credible at $300 million, which is twice as high as the valuation it received during its last round of funding. Last December, Credible raised $10 million during a Series B round. Credible will use the money they raised to continue developing its technology platform, to deepen their partnerships with other lending companies, and to continue focusing on customer acquisition.
According to CEO Stephen Dash, the company chose a public listing on the ASX because it provides them with a greater variety of options for new business opportunities and growth. Dash commented that the Australian Exchange was “an attractive alternative to private funding for growth-stage companies” connected to the Australian market.
Dash added, “This is another round of capital, not an end game,” and he continued by describing the ASX IPO as “a strong validation of our business model.”
Rob Suber, former President of Prosper Marketplace and current Vice Chairman of Credible, said the IPO showed that international investors were interested in partnering with growing financial technology companies. He added, “Credible is doing for lending what Expedia and Kayak have done for travel. We go beyond lead generation to create value for both consumers and lenders by building deep integrations throughout the ecosystem.”
Founded in 2012, Credible is a consumer financial marketplace that originally offered student loans and student loan refinancing options. They have since expanded their services to offer credit cards and personal loans. They provide quick, personalized loan offers and encourage their customers to find the plan that works best for them.
The Australian Securities Exchange is the ninth-largest stock exchange in the world. And increasingly, it appears that early-stage fintech companies, such as Credible, are considering the ASX for public investment capital. It remains to be seen whether Credible will expand into other markets in the future.