Sydney-based fintech Bridgit has raised $14.2 million in a Series A funding round aimed at offering bridging loans to homeowners. The round was led by existing investor IOF Ventures.
Founded in 2021 as TechLend, Bridgit previously raised $7.5 million in a round co-led by OIF Ventures and Perennial Partners. Bridgit provides short-term bridging loans for up to 12 months, catering to homeowners who wish to buy a new property before selling their current one. This service is particularly targeted at older generations looking to downsize.
Recent changes to superannuation rules allow individuals over 55 to sell their property and contribute up to $300,000 from the proceeds to their superannuation fund. Bridgit offers loans with interest rates just under 10%, ranging from $300,000 to $4 million, and charges a 1% establishment fee. Loan approvals can happen within a day, often taking less than an hour. The fintech lends up to 80% of the current property value and is writing around $600 million in loans annually. Typically, loans are about $1 million and repaid within four months.
In a related development, another property technology company, Downsizer, raised $3.75 million in a Seed round last year to assist Baby Boomers in relocating.
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By Proptechbuzz
By Ravi Kumar
