Judo Bank (formerly Judo Capital), an Australian SME challenger bank, announced last week it has finalized its second-round equity raising at $400 million, which is double the initial target of $200 million. This latest equity raise combines follow-on investment from Judo Bank’s existing shareholders, including OPTrust, the Abu Dhabi Capital Group, Ironbridge and SPF Investment Management, with a series of new institutional investors including Bain Capital Credit and Tikehau Capital.
Judo Bank’s Co-Founder and Co-CEO, David Hornery, claims that the company’s first and second funding rounds, which are worth a combined $540 million, equate to the largest amount of private investment raised by an Australian start-up. He also shared:
“The enormous support we have received from investors will further underpin our mission to transform SME lending in Australia. The strength of this latest funding round clearly demonstrates the investment community’s understanding of and support for Judo Bank’s truly relationship-focused offering to small and medium sized businesses – a proposition that has been materially lacking in the market for many years.”
Hornery went on to add:
“When combined with the wholesale debt lines secured from Credit Suisse and Goldman Sachs, and the strength of our recently launched deposit business, it adds further and substantial depth to Judo Bank’s provision of funding to Australia’s small and medium sized businesses.”
As previously reported, Judo is challenging the “one size fits all” approach of its much larger competitors because it believes every business is unique and should be treated that way.
“We prioritize time with each and every one of our customers to build an unrivaled understanding of every aspect of their business and find solutions that are genuinely right for them, in a timeframe that meets their needs.”