SAN FRANCISCO--(BUSINESS WIRE)--Credible, the consumer finance marketplace that empowers millennials to make smarter financial decisions, has raised $50 million (A$67 million) in an initial public offering on the Australian Securities Exchange (ASX).
The offering -- the largest tech IPO on the ASX this year -- will allow Credible to accelerate development of the company's technology platform, deepen its partnerships with financial institutions, and grow its customer base.
Credible, which is targeting the $13 trillion U.S. consumer finance market, chose a listing on the ASX to fund the company's next phase of growth because it will provide more flexibility to pursue new opportunities, said CEO Stephen Dash.
"The ASX is an attractive alternative to private funding for growth-stage companies with an Australian nexus," Dash said. "This is another round of capital, not an end game.”
After launching Credible.com as the first multi-lender marketplace to provide instant, personalized rates for student loans and student loan refinancing, Credible broadened its offerings to include personal loans and credit cards. Dash said the marketplace approach can be applied to any financial product that requires consumers to make complex choices that are difficult to evaluate.
Dash called the IPO “a strong validation of our business model. We see significant opportunities for growth in both our existing and potential future offerings.”
The IPO highlights strong investor appetite for high-growth fintech companies, said Ron Suber, Credible's chairman.
On an eight-day roadshow leading up to the IPO, Suber said potential investors -- including those in Australia, Hong Kong and Singapore -- were impressed with Credible's executive leadership team, the scale of the consumer finance marketplace opportunity, and Credible’s differentiated position in this market.
“Credible is doing for lending what Expedia and Kayak have done for travel,” Suber said. “We go beyond lead generation to create value for both consumers and lenders by building deep integrations throughout the ecosystem. Everybody wins.”
Credible’s marketplace approach has been well-received by millennials, who have annual buying power of $200 billion and value the transparency, simplicity, and immediacy the company provides. To date, approximately 665,000 consumers have created Credible accounts, enabling them to evaluate their options and take out more than $1 billion in loans.