FlexiGroup Limited (ASX:FXL) has announced it has agreed to acquire a minority equity position in Kikka Capital, an online, non-bank lender to Australian SMEs.
The company will invest $2 million in Kikka and provide a funding line, with an option to increase its investment in the future.
The partnership will also give FlexiGroup the option to white label Kikka’s lending platform.
FlexiGroup CEO Symon Brewis-Weston has indicated combining Kikka’s proprietary credit decisioning technology with its own credit risk assessment models will allow FlexiGroup to improve risk pricing.
FlexiGroup Limited reported a net profit of $41.4 million at 31 December 2015.
