Sydney-based Finance and leasing company, FlexiGroup, is taking an equity stake in fintech start-up Kikka Capital.
Kikka Capital is a fintech lending online to the small business market, providing unsecured revolving line of credit up to $100,000. The technology within the automation assess the cash flow of the business in real-time to ensure accuracy, as well as having the processing speed of seven minutes per loan. FlexiGroup is now set on receiving a minority interest from the buddying firm for an equity investment of $2 million.
Kikka Capital chief founder David Brennan said that collaboration within the fintech space was filling the gaps left by traditional finance and are giving the disruptive market players a boost within the finance space.
“The Australian SME lending market is becoming more competitive as new and innovative providers such as Kikka being to fill the gap being left by banks and other mainstream lenders,” he said.
“We believe that the deal with FlexiGroup also validates our business model and systems. Working alongside FlexiGroup will allow us to further refine our offering, drawing from their vast experience in the lending and SME lending space.”