Fresh off a major marketing campaign which saw their branding projected into millions of Aussie households as broadcast partners of the Tokyo 2020 Olympic Games, neo-lender Wisr (ASX: WZR) have reported 280% revenue growth to be eyeing profitability for the first time in their short history.
Emerging as the non-bank lender of choice amongst the younger tech-savvy generation that seek purely digital user experiences without the need to sign a single sheet of paper, Wisr’s new loan originations grew 169% to $365.8 million for FY21. It took their total loan book to $611m but more importantly, the Company generated $27.2m in revenue from those loans which represented a 280% increase on the previous year.
This included their maiden cash flow positive month in June 2021, the first time they have achieved the feat since listing on the ASX in 2018.
Beyond their digital-only experience for loan applications, credit checks and approvals, Wisr is able to offer better interest rates on personal loans than the major banks due to their online-only presence which does not incur the overheads of retail stores.
“FY21 marks another incredible set of results as Wisr’s purpose-led, fully digital and agile fintech business model delivers 20 consecutive quarters of growth, accelerated revenue growth and a maiden operating cash flow break-even month in June 2021,” said Wisr CEO, Anthony Nantes.
“The accelerated revenue growth of 280% to $27.2M is an exceptional result as the superior loan unit economics of the Wisr Warehouse funding model come into full effect.
“Now with our second major competitive product, secured vehicle loans, in market, there remains a huge opportunity for Wisr to grow market share by attracting Australia’s most creditworthy customers with a smarter, fairer deal, underpinned by an exceptional customer experience that actually improves a customer’s financial wellbeing.”
Profitability for the neo-lender is now on the horizon with Wisr reporting a net loss of $17.6m for the year which was a 25% improvement on the $23.5m loss reported last year.
Driving growth in the loan book, and subsequent administration and interest fees payable to Wisr, is the horizontal expansion into new products beyond just debt consolidation which now makes up just 31% of the Wisr loan book.
Launched in September 2021, the secured vehicle loans account for 20% of the loan book while other vehicle loans account for a further 18%. This has given quickfire growth for Wisr in the auto finance market with Wisr calculating there to be around $51 billion in consumer vehicle financing per annum in Australia.
With a handy suite of lending products that solve various needs amongst Australians, Wisr is confident they can grow their loan book beyond $1 billion in the near future, targeting a revenue yield around 12%.
Brand awareness will play a strong role in the growth with Wisr’s Tokyo 2020 marketing campaign the biggest in their history, raising awareness of their lending services to more than 16.5 million Australians that watched the Channel 7 broadcast.
*Owners of this website are WZR shareholders
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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