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ThinCats rations lending and hunts 'significant capital'

31 October 2016 4:53PM
ThinCats, a peer to peer lender, said it recently "concluded a post seed capital round" raising A$642,000 and has its eyes on a "significant capital raising" in 2017.Even so, ThinCats is, for now, rationing new listings and lending.Sunil Aranha, chief executive of ThinCats Australia, circulated a business update to investors over the weekend in which he wrote that the recent call for capital was "oversubscribed by $142,000 over our initial offering target."Aranha said that "60 per cent of the new capital was provided by existing lenders on the platform."Among priorities outlined by Aranha for the final two months of 2016 were "exploring strategic partnerships as we initiate actions towards a significant 'Series A' capital raising in 2017."Other "activities", he wrote, would include "strengthening our marketing/PR and business development capability … and interviewing with potential marketing agency partners to develop a comprehensive marketing program across digital and traditional media for 2017."ThinCats would also ramp up its entry into "first mortgage loans via our partnership with Domacom, to be followed by well secured, short term interest only high yield loans."Aranha added that "whilst we continue to have a strong level of loan enquiry, we have further refined our risk assessment criteria, which is having a short-term impact on the current number of loan listings."?The weekend update did not share any data on aggregate lending to date. In July, ThinCats said it had made "over $3 million (25 loans) to a range of SME borrowers." It said then it had "a pipeline forecast to grow our loan book to over $20 million (100 plus loans) within 12 months."

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