SYDNEY: Prospa Group Limited, a leading online lender to small businesses in Australia and New Zealand, has announced the acquisition of the Zip Business loan portfolio for approximately $15.6 million.

The deal, which will be funded using Prospa’s existing warehouse funding arrangements, will be settled this week.

The Zip Business loan portfolio consists of about $18.4 million of commercial loans to around 370 small businesses in Australia. Zip Business is a subsidiary of Zip Co Limited, a leading buy now, pay later company.

Prospa CEO Greg Moshal said the acquisition was a strategic move to expand Prospa’s customer base and offer more financial solutions to small businesses.

“We are pleased to acquire the high-performing Zip Business loan portfolio, ensuring that the 370 small businesses can continue to get the financial support they need on the Prospa platform. The acquisition reflects our continued commitment to supporting Australian small businesses with tailored finance for their needs,” he said.

Prospa, which was founded in 2012, has provided over $2 billion of funding to more than 30,000 small businesses across Australia and New Zealand. The company offers a range of products, including business loans, line of credit, and invoice finance. Prospa is listed on the Australian Securities Exchange (ASX) under the ticker PGL.