Alternative small business lender Lumi has secured $15M in fresh funding. The capital comes from Israel's largest insurance group, Harel Insurance and Finance Group, which is joining as a new investor. Existing investors participated, including Perennial's private investment arm, Josh Liberman Investment Group, Arbel, and Stellan Capital. This investment follows a $20M raise in 2020 and a $31.5M Series A in 2018.
Lumi offers businesses loans and lines of credit between $5,000 and $500,000 with repayment terms of three months to four years and lending decisions made within two hours. The platform offers business loans, lines of credit and "Lumi Lux". Lumi Lux is for good matches with revenue of $2M, a business older than three years and up to date records with the ATO. Eligible clients get a reduction in interest rates over time.
The capital will be used to develop its proprietary platform further. In particular, Lumi is looking to build out its broker distribution model.
Due Diligence: Startup Daily, AFR
