Wisr is an Australian purpose-led, fintech consumer lender with a commitment to the financial wellness of all Australians through providing a smarter, fairer and wiser collection of financial products and services.
Wisr provides a unique financial-wellness platform underpinned by consumer-finance products.
These include personal loans and secured vehicle loans with no monthly or ongoing fees, the Wisr app – which helps Australians pay down debt – multiple credit-score comparison service, combined with content and other products that use technology to provide better outcomes for borrowers, investors and everyday Australians.
Ownership and capital structure
Wisr was founded in 2018 when chief executive, Anthony Nantes, rebranded DirectMoney Finance to Wisr Finance, and began an entirely new business model driven by the purpose to improve the financial wellness of all Australians.
Wisr is led by a senior executive team and board with deep experience in financial services, technology and delivering innovative products and customer experiences.
|SIZE OF LOAN BOOK||A$432M (30 JUNE 2021)|
|MAKEUP OF LOAN BOOK||CONSUMER LENDING (PERSONAL AND AUTO): 100%|
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||AUSTRALIA: 100%|
|OUTSTANDIND DEBT ISUANCE||PUBLIC ABS: A$225M
PRIVATE WAREHOUSE: A$350M
HEAD CO LOAN: A$21.5M
While the company remains focused on the significant growth potential in the Australian market, in 2021 Wisr undertook a low-risk, small-minority investment in EU financial wellness fintech, Arbor. The investment provides Wisr with a pathway potentially to increase its shareholding to 45% over the next 36 months, as the model is proven out across the EU.
This small but highly strategic investment by Wisr opens up an entry pathway to the circa A$1.8 trillion equivalent consumer-finance market in the EU, as the company takes the first step toward building Wisr’s business model globally.
Wisr has evolved funding structures to facilitate scaling the business safely, while driving significant revenue growth and increased margin as the business matures. In 2018, it originated a wholesale off-balance-sheet loan-funding facility with 255, to scale the loan book to more than A$100 million.
In November 2019, a pivotal stage was reached with a National Australia Bank-sponsored warehouse going live with an initial A$50 million commitment and approximately tripling the previous average-loan-unit economics. Following Wisr’s strong credit performance and accelerated growth, the Wisr warehouse loan-funding facility increased to A$350 million within nine months of going live.
In May 2021, the company’s inaugural A$225 million ABS transaction, Wisr Freedom Trust 2021-1 made up of personal loans, was rated Aaa by Moody’s Investors Service for its top tranche. This provided significant external validation of Wisr’s business operations, underwriting capability, loan-book quality and the mature stage the business has reached. The transaction has already delivered a material reduction in Wisr’s cost of funds.
Twenty consecutive quarters of loan origination growth, along with the operating benefits of the Wisr warehouse funding model, delivered A$27 million in operating revenue for FY21, a 280% increase on FY20. For the first time, Wisr achieved operating cash-flow break-even in June 2021.
In June 2021, Wisr successfully completed a A$55 million equity raise, led by Goldman Sachs, and included a share-purchase plan to retail investors. Proceeds from the capital raise will be used to fund loan-book growth, technology investment and feature enhancement, and expanding Wisr’s addressable market by exploring new growth opportunities.
Wisr has taken prudent steps to strengthen its balance sheet with the recent equity raise, combined with its inaugural ABS issue. These two transactions put Wisr in an incredibly strong position to extend its technology advantage and aggressively grow lending market share in the years ahead.
FOR FURTHER INFORMATION PLEASE CONTACT:
Wisr Investor Relations
1300 992 007
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