WLTH secures $14M raise, acquires Mortgage Mart via new strategic alliance to become Australia’s top digital lender
Digital lender WLTH secures $14m investment via new alliance with Rajomon Investment Firm and Kina Bank to solidify its foothold as an industry leader.
Investment has facilitated WLTH’s acquisition of Mortgage Mart, expanding loan book beyond $1.5bn as part of strategy to become Australia’s top impact lender.
BRISBANE, AUSTRALIA, NOVEMBER 28, 2023: Digital impact lender WLTH has today announced it has acquired Mortgage Mart of Australia Pty Ltd, a mortgage manager with a loan portfolio exceeding $1 billion. The acquisition represents a major milestone in WLTH's evolution, establishing it as one of Australia’s largest independent digital mortgage lenders.
The acquisition comes as WLTH reveals it has closed a $14 million funding round, led by cornerstone investors Rajomon, a purpose-driven investment firm, and Kina Bank (ASX:KSL & PNGX:KSL), PNG's leading digital bank and second-largest commercial bank.
The funds raised via this funding round have in part facilitated WLTH’s acquisition of Mortgage Mart, while bolstering the digital lender’s working capital provisions. The move sees WLTH's loan book exceed $1.5bn, marking an important milestone in the company's growth trajectory and cementing its position as a leading Australian non-bank lender.
For every mortgage settled, WLTH has committed to clean up 50m² of Australian coastline. Alongside their partnerships with Parley for the Oceans and the Australia SailGP team, the lender has committed to cleaning in excess of 450,000 square metres to date.
The partnering of WLTH and Mortgage Mart (which will continue operating under its current brand) is a strategic move to leverage the strengths and capabilities of both businesses to create greater competition and a broader range of solutions for brokers and their customers. Both businesses share a common vision to empower brokers with a range of lending solutions and create growth opportunities outside of the “vanilla” home loan lending market.
Beyond funding support, an alliance with Rajomon and Kina Bank will be commercially strategic, with both partners planning to utilise WLTH's core capability engine and payments platform. WLTH's sizeable footprint within Australia's digital lending market and Kina's extensive customer base mutually primes the companies for lucrative commercial opportunities in the Australian and APAC regions.
Brodie Haupt, Co-Founder and CEO of WLTH, said Mortgage Mart’s industry experience and deep relationships within the broker community would complement WLTH’s digital approach and leverage further impact:
“Mortgage Mart's experienced team and broker relationships present a significant opportunity to build upon their foundations. Our immediate focus will be to leverage technology to enhance the broker and customer experience in line with the strategies that have proved successful at WLTH.
“By introducing innovative new products and streamlining application processes, including auto decisioning and electronic documentation, Aussies will be able to apply for Mortgage Mart loans in less than 15 minutes,” he said.
“Together, we aim to create a powerful force in the Australian mortgage market, providing brokers and their customers with a compelling alternative to the traditional banks. The acquisition of Mortgage Mart brings us significantly closer to achieving our goal of making homeownership more accessible and affordable for all Australians."
Drew Haupt, Co-Founder of WLTH, said the momentum of digital mortgages in the US was a robust indicator for Australia’s market trajectory:
“The banking industry globally is undergoing transformation on a scale and at a rate not seen in a generation, and the Australian market is no exception. As a new entrant, we are committed to solving problems the incumbents have ignored. We see an imminent shift to digital mortgages and continued broker dominance.”
Greg Pawson, CEO of Kina Bank, said:
“Like Kina Bank, WLTH is a leading impact lender with a strong track record of fintech innovation. We believe that the combination of WLTH's digital capabilities and Mortgage Mart's industry experience and broker relationships is a powerful force in the Australian mortgage market. By supporting the acquisition of Mortgage Mart, our investment in WLTH will drive numerous benefits for Kina Bank customers and stakeholders. We are also excited to explore opportunities to leverage WLTH's core capability engine and payments platform to support our own growth initiatives in Papua New Guinea and the broader region."
Abidal Guerinat, Founder of Rajomon said:
"We believe that WLTH is well-positioned to disrupt the Australian mortgage market and make homeownership more accessible and affordable for all Australians. At Rajomon, we believe investing should be used as a vehicle to drive positive life outcomes, and WLTH’s mission as an impact lender meets that thesis in numerous ways. Our investment also presents significant opportunities to collaborate with WLTH and Mortgage Mart on industry-first finance solutions that will support meaningful health and wealth outcomes for everyday Australians.”
For more information, visit WLTH.com
About WLTH
WLTH is an impact lender on a mission to refresh the financial services industry in Australia, with a focus on technology and sustainability. Founded in 2019 by serial entrepreneurs Brodie Haupt, Drew Haupt, Darren Hodgkin and John Kerr, WLTH provides Australians with a seamless approach to residential, SMSF and commercial lending solutions as well as a raft of fintech apps for financial institutions and merchants.
As one of Australia’s first impact lenders, WLTH is committed to making a positive impact on the environment. Choosing purpose over profit, WLTH has committed to empowering and assisting Parley for the Oceans to clean up 50 ㎡ of Australian beach and coastline for every loan settled. This gives their customers and broker network the chance to make a positive impact, creates sustainable value for stakeholders and provides a unique point of difference when meeting the expectations of a growing market of environmentally conscious consumers.
About Kina Bank
Kina Securities Limited (Kina Bank) was established in 1985 as a diversified financial service company offering customers end-to-end financial solutions – from savings accounts to business loans, investments to mortgages, financial advice and investment management. Listed on the Port Moresby Stock Exchange (PNGX:KSL) and the Australian Securities Exchange (ASX:KSL), Kina is the largest wealth management business in PNG, with more than PGK8 billion funds under management and is also the leading stockbroking company in PNG.
About Mortgage Mart
Mortgage Mart, established in 2003, has amassed a loan book exceeding $1.1 billion. As a non-bank lender, Mortgage Mart takes pride in strong broker and aggregator relationships, maintaining a low-risk lending book with arrears below industry averages.
About Rajomon
Rajomon is an Investment Management firm focused on health sector opportunities. Their philosophy connects wealth and health closely. Health is the foundation of wealth, and wealth is achieved first through good health. The fund offers a diversified investment strategy that mitigates risks and targets an annual return of 8% to 14% over a three-year period.
