Israeli firm invests in Finnies winner Lumi
Existing investors in Lumi, including Josh Liberman Investment Group, Arbel, Perennial and Stellan Capital, also participated in the raise.
AUSTRALIAN fintech company Lumi – a double winner at this year’s Fintech Australia Awards (known as the Finnies) – last week announced the completion of a $15 million capital raise, which will be used to help accelerate its rate of growth.
The large raise, despite the prevailing broader market conditions, is highly strategic for the innovative alternative lender, founded and run by Israeli-Australian Yanir Yakutiel.
The $AUD15M raise saw Israeli firm Harel Insurance and Finance Group (Harel) join Lumi as its newest major investor, and it is the company’s first investment in Australia.
Existing investors in Lumi, including Josh Liberman Investment Group, Arbel, Perennial and Stellan Capital, also participated in the raise.
Founded in mid-2018, Lumi uses its proprietary technology to offer small to medium-sized enterprises (SME) a faster, easier way to access working and growth capital.
It provides businesses loans and lines of credit from $5000 up to $500,000 on flexible terms, and fulfils successful loan applications within two hours, with a maximum loan term of 48 months.
Yakutiel, the company’s CEO, said he has always believed that Lumi is a “through the cycle” lender.
He explained, “Initially, there was concern that alternative lenders could only flourish in either a benign or a stimulatory credit environment, but our recent performance is proof that Lumi’s technology and underwriting capabilities enable it to accurately and profitably underwrite, and provide credit, throughout the cycle, even in a contractionary and inflationary environment.
“We have always been a technology-first company, and our massive investment in developing market leading proprietary technology has paid off.
“Over the last 24 months, we have launched multiple new features, and our product pipeline continues to be full.
“With the capital we have raised, we can continue to grow our balance sheet and our product offering, and support more Aussie SMEs.”
Tomer Goldberg, managing director at Harel Tech – Harel’s technology investment vehicle – said, “We firmly believe in the power of technology to revolutionise the financial landscape, enabling businesses to thrive and contribute to economic development.
“Our investment in Lumi is driven by the strong team, and the recognition of the tremendous potential, that small to midsize businesses hold, and the need for accessible and efficient financing solutions tailored to their unique requirements.”
Lumi was the only fintech company to win more than one award at the 2023 Finnies, held in Melbourne on May 31.
It won the Best Workplace Diversity category, and the Emerging Leader of the Year award, for staff member Paul Pagnan.
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