Announcements

August 2024

SkyCredit Merges with Nimble Australia, Boosting its Consumer Credit Portfolio to $100 Million

In the latest consolidation of the Australian consumer credit market, Perth-based SkyCredit has absorbed Nimble Australia in a scrip-based deal that boosts the Group's loan book to almost $100 million.

Founded in 2019, SkyCredit operates a group of financial services businesses including Fair Go Finance, One Card Credit, and FinTech Services Australia. Its acquisition of Gold Coast-based Nimble will run alongside its existing consumer credit business, with each brand set to continue as standalone operations.

"The deal is a significant milestone and will expand SkyCredit's presence in the consumer credit market," said Paul Walshe.

"This is important in terms of opening up funding sources that can help reduce our borrowing costs, which in turn will benefit our customers. The addition of Nimble to the Group will get us to a scale that will enable SkyCredit to compete better in the market for customers, capital, and staff. Once we are through the integration, we will be well positioned to leverage the Group's capabilities and improve the offering to all customers."

About Nimble Australia

Nimble Australia was founded in 2005 and grew on the back of an innovative lending platform that allowed borrowers to access loans quickly. In 2009, Nimble was the first company in Australia to process paperless loan applications. Last year, Nimble expanded further with the acquisition of ZeeFi, a specialist in finance for the education sector, adding ZeeFi's $30 million loan book to Nimble's existing $50 million portfolio.

SkyCredit's acquisition of Nimble Australia includes its loan book and brand in exchange for an undisclosed shareholding in SkyCredit. Nimble Money directors Graeme Wilson and Ben Edney have joined the SkyCredit board following the deal. SkyCredit has confirmed that Nimble's existing debt facilities have been extended to facilitate the integration of the business into its operations.

Near-prime focus

SkyCredit plans to operate Fair Go Finance and Nimble Australia as standalone brands with their own distinct offerings, targeting consumers with credit scores of 400 to 600 - a segment increasingly underserved as major banks continue to exit near-prime lending.

"The merger provides a path to continue this innovation and customer-led offering to people across Australia with a brand they trust," Walshe said. "Our credit-risk capabilities are unique and targeted to a specific segment of the Australian consumer credit market. As a result, we onboard customers more efficiently and have lower-than-average loss rates, which results in excellent customer experiences. We will bring this leadership to the Nimble brand and look forward to reinvigorating its innovative approach to consumer finance."