The WISR Ltd (ASX: WZR) share price is racing higher today following a substantial increase on its warehouse funding facility. During mid-morning trade, the neo-lender's shares are up 5.2% to 20 cents.
Let's take a closer look and see what Wisr updated the ASX market with.
More room for growth
The Wisr share price is on the move as investors appear upbeat about the company's additional funding.
In its announcement, Wisr advised that it has been secured an increased warehouse funding facility of $350 million. This comes on the back of a strong second quarter for FY21 which the company delivered a surprise result in late January.
New loan originations grew to $83.8 million for the period (Q2 FY21). This represented a 35% rise on the prior quarter ($61.9 million) and a 165% jump over the same time last year ($31.6 million).
Revenue also surged, recording $5.9 million for the second quarter of FY20. This reflected a 43% lift on Q1 FY21 and a 350% improvement on the prior corresponding period.
Based on these metrics, Wisr's incumbent senior bank advisors and mezzanine funders were pleased to provide additional support.
Subject to final legal documentation, the much larger funding facility will give Wisr more room to aggressively grow its market share.
What did the CFO say?
Wisr CFO Andrew Goodwin touched on the company's performance, saying:
Through the strong support from our funders, in just over a year of the Wisr Warehouse going live, we have delivered an exceptional 350% growth in quarterly revenue (Q2FY21 compared to Q2FY20), rapidly scaled our personal loan originations quarter-on-quarter and entered the $51B vehicle finance market via our new secured vehicle product.
The outstanding performance of the Wisr loan book, and our market leading ability to attract Australia's most creditworthy customers (as demonstrated by our 90+ day arrears of 0.79% at 31 December 2020), validates our lending model and risk governance. The superior loan unit economics underpinned by the Wisr Warehouse, is delivering significant operating leverage as revenue continues to grow strongly in-line with the growth of our loan book.
About the Wisr share price
The Wisr share price has gained more than 20% over the past 12 months. However, since the beginning of September 2020, the company's shares have mostly stagnated around the 20-cent mark.
