Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Harmoney has $30 mln on hand as it steps up Australia launch

Harmoney has $30 mln on hand as it steps up Australia launch
By Paul McBeth

Feb. 12 (BusinessDesk) - Harmoney Corp, New Zealand's first and biggest peer-to-peer lender, has raised $30 million of working capital as it steps up plans to launch in Australia this year, but doesn't anticipate seeking more funds until it's cash-flow neutral.

The Auckland-based company this month sold $8.8 million of new shares to Stone Ridge Ventures and P2P Global Investments, taking total funds raised to $30 million. Co-chief executive and its biggest shareholder Neil Roberts told BusinessDesk the company will have to raise more funds at some stage if it's to develop into a large-scale business, but it wants to do so from a position of strength.

"That means for us getting as quickly as we can to cash-flow neutrality, and that's what we're focusing on right now," he said. "We've got massive aspirations for this business so I wouldn't be surprised at some stage where we raise again."

Harmoney facilitated more than $100 million of loans through its peer-to-peer platform in its first year of operation, and is closing in on $200 million just five months later. However, while still having first-mover advantage, it now faces a wave of competition with three others licensed platforms – Squirrel Money, LendMe and Lending Crowd - having launched their services and crowd-funding platform PledgeMe applying for a licence.

The competition at home comes as Harmoney prepares to launch into Australia, where it has already achieved the appropriate licences, becoming the first trans-Tasman peer-to-peer lender.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Roberts said the firm hasn't settled on a formal launch for Australia yet, but will introduce an invite-only period across the Tasman in the coming weeks. That will let Harmoney iron out any issues before the hard-launch.

The company currently employs 80 staff, of which 25 engineers are based in Parnell and five senior people in Australia. Roberts said the company will beef up its sales and marketing team in Australia once it launches across the Tasman, but that the firm plans to keep its development group local having already tried outsourcing to India before bringing it in-house.

Roberts said the company is focusing on maintaining strong governance and management, meeting compliance obligations, generating positive cash flow, and being in control of its market and revenue, all features he says would prepare Harmoney for an initial public offering.

"We certainly wouldn't rule out an IPO, but what we're concentrating predominantly on are the ingredients a company would need to be operating at a level that it could float," he said. "I think we've done a good job so far. We need to grow and get better. At some point we really do believe the value proposition has got mass market appeal."

Harmoney is currently looking for a new director to replace former chairman Rob Campbell, who departed in December, and Roberts said they will interview prospective candidates next month before announcing a new chair in April.

The new director will need a background in financial services, and while some Australian experience would be beneficial, Roberts said they want a New Zealand domiciled chair.

Roberts spent four months out of the board room last year, which he said was to meet the terms of the shareholders agreement after the series A fund raising round, which he also used to take time away from the business. He rejoined the board in December.

"Coming back it was an opportune time, the board wanted me back as a director, so I rejoined the board when I got back from my leave," he said.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.