Loan management platform Credi has opened a $1 million equity crowdfund on Equitise in a bid to enable everyday investors to buy shares in the company.
Credi first launched in Australia in April 2017 and aims to help users build, negotiate, share and manage money lent to one another.
The platform, which is free to use for loans under $2,000, does not provide any credit but instead enables parties to manage loans between themselves online, in a bid to remove friction associated with informal lending money.
According to Credi, since its launch it has been involved in more than $100 million of transactions with an average loan size of $80,000 across 5,200 users from 26 countries.
The company has now launched a fundraising exercise on crowdfunding platform Equitise in a bid to raise $1 million.
The first equity crowdfunding campaign will reportedly be used on marketing and international expansion.
Credi will reportedly issue ordinary shares valued at 10.5c each on the Equitise platform, with a minimum target of $200,000.
The raise comes with a minimum investment of $210 and will be open for just under one month.
Credi founder Tim Dean commented: “We have Credi users eagerly awaiting to invest in Credi. This endorsement confirms that our platform is a much needed disruptor in the fintech space.
“With Australians still digesting the findings of the Hayne royal commission, the spotlight is on high cost credit and irresponsible lending.”
Mr Dean continued: “Australians are already lending millions of dollars to friends and family on Credi, at an average interest rate of 3 per cent compared to the double digit rates charged by many of the majors.”
Equitise co-founder Chris Gilbert added: “As Credi is a platform formalising loans for everyday Australians, it makes complete sense the company would turn to everyday investors or ‘the crowd’ to raise capital.”
Several fintechs have turned to crowdfunding in recent years, with some finding more success than others. HashChing recently failed to raise its target amount during an equity raise, while neobank Xinja raised $2.6 million from over 1,500 investors in its second equity crowdfunding campaign.
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