The MoneyMe Ltd (ASX: MME) share price is taking off this morning after the company released news of a partnership.
The credit provider has secured $50 million through a new strategic funding partnership with Pacific Equity Partners.
At the time of writing, the MoneyMe share price is $2.13, 2.9% higher than at Friday's close.
Let's take a closer look at today's news from MoneyMe.
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MoneyMe's new funding partnership
The MoneyMe share price is in the green after the company announced it has entered a funding partnership with Pacific Equity Partners.
Pacific Equity Partners is an Australian investment firm with around $7.1 billion of funds under management.
Under the partnership, MoneyMe has gained an initial $50 million funding commitment.
The funding will be allocated through a 4-year secured hybrid funding instrument and documented under a syndicated facility agreement.
The cash injection will go towards growing MoneyMe's product suite and its new Autopay car loan product.
MoneyMe will also use the funds to develop and deliver new products. The new products will build from its successful ListReady, Autopay, MoneyMe+, and Freestyle products.
Some of the cash will also be used to repay its $22 million secured note facility.
MoneyMe also plans to expand its securitisation warehouse program, which maintains a cost of funds of less than 5%.
Commentary from management
MoneyMe's managing director and CEO, Clayton Howes, commented on the news driving the company's share price today:
MoneyMe's high growth trajectory from its personal loan and Freestyle products has accelerated with the recent launch of products in the larger [business-to-business-to-customer] markets including Autopay and MoneyMe+ which are unlocking significant incremental growth pathways for the Group. The partnership with PEP is instrumental to securing the very large opportunity in front of us.
Pacific Equity Partners' managing director, Jake Haines, also commented on the partnership:
We see MoneyMe as a leading platform within the consumer lending space with great people, technology and products and a relentless drive to provide excellent service and innovative solutions to its customers.
MoneyMe share price snapshot
Today's gain has added to MoneyMe's strong recent performance on the ASX.
Right now, the lender's share price is 44% higher than it was at the start of 2021. It has also gained 38% since this time last year.
