Australia’s leading technology-powered investment and lending platform, Plenti^, today announced a significant milestone for its rapidly scaling secured automotive business, with the establishment of a warehouse funding program.
Plenti CEO Daniel Foggo said: “Today is a landmark day for Plenti and the diversification and growth of our business. The funding warehouse provides low-cost and scalable automotive funding for the company. We are delighted to be partnering with NAB and our other funders to complement our existing funding sources.”
NAB is providing a senior funding commitment to the warehouse and is joined by an international bank and a domestic investor providing mezzanine finance.
The warehouse facility is the natural evolution of Plenti’s growth strategy and ambition to build a multi-billion-dollar, market-leading secured automotive lending business.
“Plenti is uniquely placed to build a substantial presence in Australia’s $50 billion automotive finance market, as traditional players struggle to keep pace with technological advances, a changing regulatory environment, and shifting consumer behaviours. Our warehouse funding program provides us with considerable capacity to grow our automotive business.”
The company has a strong pedigree in automotive finance, having ASX-listed Carsales as a significant shareholder, having broad broker and digital distribution in place and having already funded over $170 million of automotive loans.
Mr Foggo said: “The importance of the warehouse in Plenti’s development is that the business has intentionally built a diverse funding base over the last five years. We have attracted over 19,000 retail and SMSF investors to our retail platform since launch, and in recent years we’ve complemented this base with institutional, superannuation fund and Government investors. We are excited to now be adding this warehouse to our funding sources as this will bring further diversity and resilience to our business model as we continue to scale.”
Since its launch, Plenti has funded $730 million in consumer loans to over 45,000 borrowers, while maintaining market-leading credit performance.
Plenti expects to commence funding secured automotive loans from the structure from February 2020. Amounts committed by funders are confidential.
^Plenti was known as RateSetter prior to August 2020.