Judo Bank attains unicorn status

Source: IBS Intelligence 2020-05-18

Australia’s Judo Bank has raised $230 million in fresh equity, thereby valuing the neobank to push through $1 billion and indicating the support of investors even amid the current ongoing Coronavirus (COVID-19) pandemic, according to media reports. The bank which has now attained the unicorn status from its third round of capital raise has been co-founded by David Hornery and Joseph Healy.

“The support we’ve received for our third round, at an increased valuation to our second round capital raise last year, underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets, that has impacted all bank valuations,” said Hornery, according to media reports.

Existing investors of the Southbank-based bank include Bain Capital Credit, Myer Family Investments, the Abu Dhabi Capital Group, Ironbridge, SPF Investment Management, OPTrust, and Tikehau Capital.

“We now have one of the strongest capitalised tier-1 ratios in the country, and intend on rapidly growing our national footprint, and expanding the products and services we offer to thousands of Australian SMEs, whose needs have long been ignored by the major banks,” said Hornery as per media reports.

In April, the neobank secured $500 million in investments from the government to help provide loans to small businesses, according to media reports which also apprised on the announcement by the government to invest an initial amount of $250 million into the bank’s lending warehouse through the Australian Office of Financial Management’s (AOFM) Australian Business Securitisation Fund; and the remaining investment through the government’s Structured Finance Support Fund (SFSF).

Judo Bank attains unicorn status

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