In a somewhat surprising move, the San Francisco-based financial technology company Credible Labs Inc. went public, but not in the United States. The company raised $50 million USD during their initial public offering (IPO) - on the Australian Securities Exchange.
Although not massive in comparison to other IPOs from similar tech companies in the United States, the Credible Labs Inc. offering represents the largest technology IPO on the Australian Securities Exchange this year. This is the second initial public offering for Credible, and the company’s value was listed at $300 million Australian dollars. This represents a 50% increase in the company’s evaluation over the Series B round in December 2016 which led to Credible raising $10 million USD.
The $50 million raised on the Australian Securities Exchange will be used to further develop the company’s technology platform, add more partnerships to the brand, and further expand the company’s customer base.
The move should make acquisitions a little easier for Credible, and according to their Vice President Ron Suber, part of the reason for the initial public offering happening in Australia was to introduce new capital without the high costs associated with venture capitalists. “You don’t have to go the traditional venture capitalist way. Sometimes there is money out there that has less of a penalty than the VC community.”
Credible was founded as a virtual platform for student loans, but since its founding in 2012, the company has expanded its products to include personal loans and credit cards. The company is looking at the possibility of expanding its product line to include more traditional brick and mortar style financial products. However, Credible will still innovate these traditional products to deliver an easy to use, and easy to understand the product that works for the common person.
Credible has been making some interesting moves lately, and their expansion from principally a student loan company to a fully established financial situation has seen the company flourish. On December 9, 2015, Credible announced that it would be expanding its operations to include personal loans. Throughout 2016, the company saw increases of clients, and their evaluation shot up just before its initial Series B funding opportunity in December of 2016.
Further to this, the company has seen some key movements within their executive ranks. Ron Suber joined Credible as the Executive Vice-Chairman on August 1, 2017. Suber was previously the President Emeritus and Senior Advisor at Prosper Marketplace. He also has been nicknamed ‘the mayor of fintech’ due to this role as an investor, and advisor to various fintech companies.
Alan Gellman joined the team as the Chief Marketing Officer in mid-August 2017. Gellman is the former Chief Marketing Officer of Esurance and is the first in this position at Credible. Gallman was also named one of the top fifty Chief Marketing Officers in the world according to Business Wire just before his departure from Esurance.