“This partnership will integrate ColCap’s product innovation with Molo’s innovative technology platform and further strengthen our offering as we strive to re-establish ourselves in the market.”
In April, Molo suspended accepting new applications for buy-to-let products while completing the transition to a new funding partnership.
ColCap, founded in 2006, is a private non-bank financial institution specializing in mortgage loans. It currently has a loan portfolio of over A$11 billion.
The partnership includes a broader strategic alliance between the two lenders which will allow ColCap to expand into the UK market as a first step in its international strategy. As part of the agreement, ColCap has invested in Molo and will provide support to further expand its access to mortgage financing to restart and accelerate its growth in the buy-to-let market.
Through this new partnership, Molo is looking to re-enter the market soon with a new range of buy-to-let products, after suspending its products earlier this year due to volatility in capital markets and its impact on some of Molo’s former backers.
Francesca Carlesi, CEO and co-founder of Molo, said: “We are thrilled to partner with ColCap, who understand our technology-driven strategy and proposition. They are recognized as one of Australia’s leading mortgage industry distributors with over 16 years of experience and a track record of delivering innovative and competitive products to customers. This partnership will integrate ColCap’s product innovation with Molo’s innovative technology platform and further strengthen our offering as we strive to re-establish ourselves in the market.
Andrew Chepul, CEO of ColCap, added: “We are excited to move into the UK and bring new loan products to market, as we have done in Australia. Our partnership with Molo fits perfectly into our strategic plan. We believe our values common interests, our synergies and combined strengths will enable accelerated growth for both companies.