Australian non-bank lender Colcap Financial has acquired an 80% stake in UK’s digital mortgage lender MoLo for an undisclosed sum.
The acquisition forms part of ColCap’s strategy to bolster its presence in the UK mortgage market.
It builds on their existing partnership, which was signed in July 2022.
Molo, which was launched in 2018, leverages proprietary technology to offer mortgage products via an online channel.
Using Molo’s digital know-how, ColCap hopes to broaden its reach internationally and enter the £310bn UK mortgage market.
The current management team will continue to run Molo as an independent business as part of the ColCap group.
For the London-based Molo, the investment is expected to provide it access to ColCap’s funding and expertise in the mortgage industry.
ColCap co-founder and CEO Andrew Chepul said: “We are excited to welcome Molo to the ColCap group. Through a combination of Molo’s digital distribution capabilities and ColCap’s funding and mortgage product structuring expertise, we look forward to making significant inroads into the UK’s large addressable market.”
Molo co-founder and CEO Francesca Carlesi said: “Molo has always been focused on using technology to simplify the mortgage process and make it more accessible to customers. This transaction marks the start of an important new chapter for Molo, allowing us to expand our reach and accelerate our growth. Together we will continue to innovate our products and deliver exceptional levels of customer service.”