Judo Bank raises $148.5 million

Judo Bank, the Australian SME-focused challenger bank has raised $148.5 million in  equity at a post-money valuation north of $651 million. Investors participating in the round include Bain Capital Credit, Myer Family Investments, the Abu Dhabi Capital Group, Ironbridge, SPF Investment Management, OPTrust, and Tikehau Capital.

Founded in 2016, Judo Bank, which raised ~$978 million in equity and debt, was cofounded by the former head of National Australia’s business bank, Joseph Healy, and NAB alumni David Hornery. It is taking on the big four banks which account for 80% of the SME lending market, and so far, it has more than $1.5 billion in deposits and has already written more than $1.5 billion in loans, with around 10,000 customers across both loans and deposits.

“The support we’ve received for our third round, at an increased valuation to our second round capital raise last year, underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets, that has impacted all bank valuations.” – Cofounder and co-CEO of Judo Bank, David Hornery