Judo Bank, an Australian challenger focused on SME lending, has secured A$400m ($276.2m) in its second round of equity fundraising.

The equity raise is said to double the initial target of A$200m, representing the biggest individual private funding round by an Australian start-up.

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The latest investment comes from the lender’s new institutional investors Bain Capital Credit and Tikehau.

Judo Bank’s existing shareholders OPTrust, the Abu Dhabi Capital Group, Ironbridge and SPF Investment Management also backed the company.

Overall, Judo Bank has raised a total of A$540m through the two funding rounds.

Judo Bank co-founder and co-CEO David Hornery said: “The enormous support we have received from investors will further underpin our mission to transform SME lending in Australia.

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“The strength of this latest funding round clearly demonstrates the investment community’s understanding of and support for Judo Bank’s truly relationship-focused offering to small and medium sized businesses – a proposition that has been materially lacking in the market for many years.

“When combined with the wholesale debt lines secured from Credit Suisse and Goldman Sachs, and the strength of our recently launched deposit business, it adds further and substantial depth to Judo Bank’s provision of funding to Australia’s small and medium sized businesses.”

Headquartered in Southbank of Victoria, Judo Bank received full banking licence in April this year.

Furthermore, the lender selected Temenos to support its core banking strategy. It deployed Temenos T24 Transact, Analytics, Financial Crime Mitigation and Channels, as a part of this effort.