MoneyMe has decided to raise $25 million in funding to fund the acquisition of SocietyOne through existing commitments from Pacific Equity Partners.

In an ASX listing on Thursday, the fintech lender confirmed that despite “good support” from existing investors and new institutional investors, it “concluded that the current market environment is not conducive to proceeding with the planned $20 million raise”.

“PEP’s funding commitment demonstrates the strength of the relationship between PEP and MoneyMe and the diversity of MoneyMe’s funding strategy,” said PEP Managing Director Jake Haynes.

“PEP is excited to deepen its relationship with MoneyMe. PEP recognizes MoneyMe's strong track record of growth and innovation and the strong opportunity to create value from both the core business and the logical and synergistic acquisition of SocietyOne,” added Mr. Haynes.

MoneyMe said it has cash reserves available to continue to fund the growth of its loan portfolio, but admitted it may consider raising equity capital in the future if it is deemed to be in the best interests of shareholders.

MoneyMe confirmed its acquisition of SocietyOne in December for approximately $132 million.

“The strategic value is huge for both businesses and we are incredibly excited. "The opportunity to accelerate growth and cost efficiencies is quickly realized by combining the strengths of both brands and migrating SocietyOne's operations to MoneyMe's high-tech Horizon technology platform," Clayton House, MoneyMe's managing director and CEO, said at the time.

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Now an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.