According to information released to the ASX, listed fintech Beforepay has continued its strong growth and path towards profitability, driven by a combination of pay advance growth, user growth, and machine learning powered credit risk decisioning, while providing an award-winning ethical lending solution to working Australians.
Beforepay provided $628 million in pay advances during FY23, up 92% YoY. This lifts cumulative advances since inception to over $1 billion.
Continued strong growth was achieved during Q4 FY23 with pay advances of $162 million, up 51% on Q4 FY22, driven by both new customer acquisition and continued usage by existing customers.
Despite the current difficult macroeconomic backdrop, due to earlier limit reduction efforts on defaults reported in Q3FY23, including selective reduction of some limits, decreasing limits for customers where creditworthiness had changed, and refinement of the credit model, we have seen a decline in delinquencies in Q4 FY23. Further details will be provided in the company’s full Q4 FY23 Quarterly Activities and Appendix 4C Cash Flow Report to be released at market opening on 28 July 2023.
Beforepay’s active user base grew 35% YoY to 234K (FY23), up 5% on Q3 FY23.
In total, more than 1 million customers have now registered for Beforepay’s pay advance service.
As stated in the announcement, Beforepay’s substantial growth is in line with its journey towards profitability, characterised by increases in user and advance numbers, sustainable unit economics, and tightly controlled costs.
Active users in Q4 FY23 (being 234K users) had an average loan size of $341 and a 95% return rate.
In addition to this growth, Beforepay was recently recognised as the 2023 Ethical Lender of the Year in the Global Pan Finance Awards.
This post originally appeared on TechToday.