Commonwealth Bank of Australia’s (CBA’s) venture-scaling arm, x15ventures, has agreed to acquire cloud-based invoice lending platform Waddle for an undisclosed amount.
The bank already has a partnership with Waddle through its ‘Stream Working Capital’ product, enabling its Australian business customers to release cash tied up in unpaid invoices with a digital cash flow solution that is connected to business accounting software like Xero, MYOB and QuickBooks.
Following completion of the acquisition, the technology will be brought in-house, meaning CBA can continue to grow its ‘Stream Working Capital’ product.
CBA group executive business banking, Mike Vacy-Lyle, said: “We launched Stream Working Capital as a digital solution to use outstanding invoices as loan security, with the loan size reducing as invoices are paid. This digital end-to-end solution was a first for a major Australian bank.”
He added: “Through acquiring the Waddle platform, we can continue to provide the best integrated digital working capital solution in the market and support more of our customers with faster funding assessments and approvals.”
Toby Norton-Smith, managing director at x15ventures, said: “This will bring together a phenomenal product and distribution arm in Stream Working Capital, with the secure technology and operating environment of x15ventures, giving Waddle the flexibility and freedom to continue innovating at pace.”
Norton-Smith added that x15ventures was established in 2020 so that “digital native” businesses can operate in the ways they are used to, while also getting access to “the assets and reach of one of Australia’s leading banks”.
CBA confirmed the transaction is expected to close “reasonably soon after satisfaction of customary conditions”.