CBA To Acquire Cloud-Based Invoice Lending Firm Waddle

The Commonwealth Bank of Australia (CBA) is set to acquire cloud-based invoice lending firm Waddle. The acquisition will accelerate the bank’s plans to offer working capital solutions to businesses across Australia.

CBA will make this acquisition through its venture scaling division known as x15ventures. The acquisition will bring technology in-house and expand the growth of CBA.

Waddle’s Acquisition Set To Benefit CBA

This acquisition will focus on the growth of CBA’s Stream Working Capital product. This product allows businesses to access cash locked in unpaid invoices. It also offers a digital cash flow solution linked to business accounting software such as MYOB, QuickBooks, and Xero.

CBA and Waddle already have an existing relationship for the Stream Working Capital Product. CBA will also benefit from the flexibility and first-class automation offered by the Waddle platform.

The CBA Group Executive of Business Banking, Mike Vacy-Lyle, said that Waddle’s acquisition would support the bank’s focus by offering a simple finance solution. The offering also makes it easy for businesses to access funds through Waddle’s Stream Working Capital product.

This offering will also offer the best digital experiences to customers. The executive said that many businesses sought working capital as it was vital to operations. He noted that Stream Working Capital offered a high level of flexibility, simplicity, and fast access to cash flow.

“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,” Vacy-Lyle said. “This digital end-to-end solution was a first for a major Australian bank.”

He also said that acquiring Waddle would equip the banking platform with the market’s best integrated digital working capital solution. CBA will also have more customer support and increased funding assessments and approvals.

The acquisition is seen as a positive step that will help more Australian businesses maximize their cash flow and achieve further growth in their businesses.

Maximizing Existing CBA Investments

As aforementioned, CBA has made this investment through x15ventures. The Managing Director at the VC firm. Toby Norton-Smith said the acquisition deal was a unique opportunity to maximize the existing CBA investments. The offering is set to have significant benefits to customers.

According to Norton-Smith, the company will create a unique product and distribution division in Stream Working Capital. X15ventures will also work with secure technology and a robust operating environment.

Waddle will also have the flexibility and freedom to continue innovating. According to Norton-Smith, CBA Bank set up x15ventures to allow digital native businesses to operate in a manner that meets their cultural and technical objectives.

X15ventures will also allow businesses to access the assets they need while reaching out to one of the leading banks in Australia.

“We look forward to welcoming Waddle to x15vebntures and helping them continue to realize their ambitions to scale and support more small businesses.

According to Norton-Smith, the bank would ensure that Waddle and x15ventures realize their ambition to achieve scalability while supporting more businesses. The acquisition is expected to close on time after meeting all customary conditions.