Sapien takes controlling stake in Hashching

The group, which has been invested in the company as a minority stakeholder, now has just over 50 per cent stake in the company through its controlling holding entity, Hash Financial Group, after increasing its capital injection in February. 

Sapien also has additional stock options, which it said it may look to exercise at a later date. There are also further equity (and debt) injections committed for the remainder of 2023, the group told The Adviser.

Victor Jiang, founder and managing director of Sapien Group, commented: “We are excited to further double-down on our investments into Hashching and provide them with the necessary capital to accelerate growth. 

“The Australian and regional economies are entering a new phase of higher-interest environment and this represents new challenges and opportunities.

“On the back of the team’s strong execution over the past two to three years and given Hashching’s existing market presence and technological lead, we see an inflection point coming to potentially further enhance its unique value proposition to consumers and brokers.”

It is believed that Sapien will be looking to strengthen its representation at the Hashching board level given its controlling stake.

Mr Jiang added that Sapien’s extended investment in Hashching aligns with its strategy to “support the next generation of fintech ventures to acquire a more dominant market share domestically and expand globally”.

As part of the deal, Sapien has led a capital raising round to “turbocharge” the business.

On the equity front, Sapien and its affiliates have deployed over $8 million in equity capital to Hashching over time and the company has raised total equity of over $12 million. 

On the debt front, Sapien and its affiliated partners have committed $40 million in warehouse facilities for loan products to be distributed via the platform, with another $200 million earmarked to be deployed within next 12 months.

The Sapien managing director told The Adviser that Sapien will be looking to connect Hashching with some of its other “strategically-invested platform ventures” in order to drive further cross-distribution among new demographics, such as international accredited investors and international students.

Speaking of the move, Arun Maharaj, chief executive of Hashching, stated: “We are thrilled to partner with Sapien Group. Not only was Sapien’s VC arm the first institutional investor in Hashching, the group has also been our most consistent investor. 

“With their ongoing support and new regional APAC footprint, we can accelerate our growth and diversify our offering to new markets and new sectors. 

“We see a great opportunity to create a unique value proposition to brokers and clients, beyond Australian shores. This partnership will help us achieve our vision of revolutionising the way consumers access and obtain financial products.”

Hashching operates a one-stop shop for customers looking to apply for a mortgage loan or to refinance an existing loan in Australia, providing connection between clients and brokers.

It has so far helped originate $62 billion worth of home loan and business deals and is reportedly looking to strengthen its position as a “one-stop-shop for all financial products”.

Mr Maharaj continued: “At a time of economic uncertainty and increasing interest rates, more than ever before Australian borrowers need certainty from their lenders and broker support. 

“Hashching has nearly 5,000 registered brokers on its platform nationwide and have begun partnering with additional lenders who sit outside of normal aggregator channels.

“With the tech sector reeling from a lack of funding more broadly, Hashching is very well placed to increase market share and capitalise on consolidation opportunities which might become available over the next 12–24 months.”

[Related: HashChing revamps offering, completes capital raise]