Custom Debt Solutions for Technology & Growth Companies

Koala founded a pioneering consumer-focused e-commerce business in Australia, with developed sourcing and go-to-market strategies but needed additional funding to take the business to the next level. The founders had achieved scale successfully without raising outside equity funding and were interested in ways to continue to grow the business and reach new milestones before raising venture capital. PFG was impressed by Koala’s talented management team that had demonstrated skill and adept growth tactics all while bootstrapping the company to a market-leading position.

The team at PFG quickly appreciated Koala’s business profile, market opportunity, and operating plan. PFG structured a term loan facility that expanded alongside Koala’s growth, allowing for incremental capital availability to continue funding the company’s expansion.

Subsequently, when Koala were looking to raise outside equity capital, PFG made introductions across its network of like-minded growth investors connecting Koala with the fund that made the first outside institutional equity investment into the company. PFG has continued to grow with Koala as a trusted partner, delivering debt capital to help the business fund its expansion into new markets as well as the development and penetration of new product categories.

FinAccel, via its consumer brand Kredivo, operates a digital credit platform in South-East Asia and is today regarded as one of the leading fintechs in the region. Kredivo is a digital credit card equivalent, providing its users with fast and affordable solutions to shop online, shop offline, and get a cash advance, all through the convenience of a single credit limit. Today regarded as market leader in Indonesia, Kredivo is expected to be rolled out across some other markets in South-East Asia soon.

By tapping a region with strong unmet demand and delivering a high-impact product, the management team has built a solid track record and reputation over the past 4 years+, including impressive performance across risk metrics. On the back of this, FinAccel was also able to raise significant amounts of equity capital from leading investment firms in Asia and Australia.

As the company was looking to continue on scaling its business, new financing alternatives for its loan book were being explored. PFG was then introduced to the company through close contacts at one of Kredivo’s lead venture investors, SquarePeg Capital.

In 2019, PFG structured the company’s first significant offshore debt facility through a warehouse loan to help finance its rapidly growing loan book. Where others may have seen challenges in setting up such a facility, operating across several jurisdictions, PFG instead saw a unique opportunity to do what we do best: develop a custom lending solution to overcome complexity and efficiently deliver capital to enable the business to keep on growing its book. The warehouse assets consist of the company’s loan receivables, further enabling the company to scale and improve the funding cost of its overall book.

Thanks to this first landmark transaction, the company has since been able to not only over-achieve targets but also attract further financing where the financing structures developed by PFG were subsequently replicated.

‘’The PFG team has been tremendously supportive of the business and has always shown great flexibility and commitment to build a win-win and long-term partnership’’, Akshay Garg, CEO & Co-founder

HotDoc, based in Melbourne, built a software-as-a-service (SaaS) business focused on driving efficiency across the patient booking and healthcare service provider operational experience by delivering convenient and simple to use online tools. Having raised equity financing to invest in product and prove market potential, HotDoc was looking to accelerate growth. While the business had strong trends with top line growth, it was still actively investing in sales and marketing and not yet generating cash flow. As a software business with limited hard assets on the balance sheet and still pre-cash flow, the company did not have access to suitable bank financing options.

PFG was able to quickly assess the HotDoc’s core technological value, marketplace dynamics, and understood the growth trajectory that would enable the company to deliver future profitability. PFG structured a line of credit that allowed the company access to a flexible facility and borrow against its subscription revenue base. The recurring revenue facility was designed to scale with HotDoc’s growth in subscribers and subscription revenue delivering additional borrowing capacity to fund continued expansion.

HotDoc continued to invest in growth reaching an important annual recurring revenue milestone that supported the company’s ability to successfully raise additional venture capital at a compelling equity valuation.