Nectar kicks off Series A
Nectar kicked off its Series A capital raising this week and is raising $4m at a pre-money valuation of $20m. So far, $500k has been committed to the round by existing shareholders.
$1m will be allocated to accelerate scaling of the business and improve Nectar’s automated end-to-end processing capability.
$3m of the raise will be allocated to support the expansion of our loan book. This is expected to enable us to grow the loan book from the current $27m to ~$50m – $60m (estimated by Q2 2023).
The market opportunity continues to be strong for digital lending businesses with incumbents continuing to lose market share. Nectar’s technology driven approach to lending is continuing to allow us to take customers away from our competitors with 3,400+ active customers.
Nectar is performing strongly on all operating metrics and today has been no exception. The team has had a storming Friday, funding in excess of NZ$250k – one of Nectar’s best ever days! Nectar is on track to continue the strong growth the business has seen throughout 2022. Monthly revenue is ~$600k and we are close to operational breakeven.
Market conditions are favouring lenders such as Nectar that use risk-based pricing to account for market risk and the volume of applications Nectar is currently receiving is significantly above our current ability to fund the loans.
Full details of Nectar’s capital raise can be found here.