Butn to go public

Butn has closed its $20 million initial public offering (IPO), which saw MYOB Australia increase its stake to 19.9 per cent.

The IPO price was 50 cents a share, indicating a market capitalisation of $80 million.

Butn has signalled it will use the funds to invest in its core business model, which includes receivables book growth, accessing new markets and expanding its platform partnerships.

The company has financed around $500 million of business transactions, since it was founded by joint chief executives and executive directors Rael Ross and Walter Rapoport in 2015.

Butn launched its fintech solution last year, which digitised and automated the process including customer onboarding, credit and risk assessment; and funding and collections.

Mr Ross commented the company is positioned “strongly for future growth”.

“Australian SME funding is a $300 billion market opportunity which is under-serviced by traditional financiers,” Mr Ross said.

In April, Butn teamed with MYOB to offer customers of the accounting software platform an integrated invoice funding solution.

The partnership and MYOB’s investment formed part of a $12.5 million funding round for Butn.

The company also partnered with Lend.com.au (Lend), to offer a product where brokers could access advanced commissions for a fixed fee of $100 during the month of April.

Lend had added Butn to its panel of lender partners in February.

[Related: Mortgage Choice officially joins REA Group]