Australia’s newest unicorn: Judo Bank hits $1 billion mark
Judo Bank is the newest Australian company to enter unicorn territory, after its latest round of funding pushed its valuation to well over $1 billion.
The challenger bank closed its third round of funding having brought in $230 million, bringing the total equity raised over three rounds to $770 million.
It also received a $500 million injection from the Federal Government in early April to boost the flow of capital to Aussie businesses throughout the current downturn.
The latest batch of funding comes courtesy of existing backers such as the Abu Dhabi Capital Group, Bain Capital Credit, Ironbridge, Myer Family Investments, SPF Investment Management, OPTrust, and Tikehau Capital.
According to Judo co-founder David Hornery, the outcome “underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets.”
"We now have one of the strongest capitalised tier-1 ratios in the country, and intend on rapidly growing our national footprint, and expanding the products and services we offer to thousands of Australian SMEs, whose needs have long been ignored by the major banks," he added.
While so many banks see their profit margins squeezed due to the economic slowdown, Judo’s newly minted unicorn status, along with the support it has received from the Government, offer a clear sign it’s on secure footing.
It has handed out $1.6 billion in business loans and taken $1.5 billion in deposits since its founding in 2016.
Judo Bank is now the first among the new generation of Australian banks to be valued at over $1 billion, and one of only two Australian fintechs - the other being Airwallex, a cross-border payment technology startup.
For an overview of Judo Bank’s business loan and personal products, visit our Judo Bank information page.