Commonwealth Bank of Australia (CBA), through its venture-scaling arm x15ventures, has signed an agreement to acquire cloud-based invoice lending platform Waddle.
The agreement builds on an existing partnership between CBA and Waddle, where the two companies worked together on CBA’s Stream Working Capital product.
Stream Working Capital allows business customers to unlock cash tied up in unpaid invoices through business accounting software such as Xero, MYOB, and QuickBooks.
The acquisition of Waddle will help advance the growth of its Stream Working Capital product while benefitting from the automation and flexibility offered by Waddle, said CBA.
The proposed transaction is expected to be completed soon, subject to the satisfaction of certain customary conditions.
CBA Group business banking executive Mike Vacy-Lyle said: “Acquiring Waddle further supports the bank’s focus on simplifying finance, making it easier for businesses to access funds through its Stream Working Capital product as well as providing the best digital experiences to its customers.
“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.”
“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.”
Waddle is a fully white-labelled digital lending platform that provides businesses with funds from their outstanding invoices and connects with accounting software.
The end-to-end cash flow platform allows lenders and their business customers to manage their entire portfolio through a single application.
Established in 2020, x15 is a venture scaler powered by CommBank, engaged in building, purchasing, and investing in startups that would benefit from connections to CBA.
The x15 platform combines advanced cloud technology with enterprise-grade controls, allowing its ventures to scale through access to CommBank’s capital, brand, and customer distribution.
CBA said that the acquisition of Waddle by x15ventures will support its strategy to provide Australian businesses with rapid and more flexible working capital solutions.
x15ventures managing director Toby Norton-Smith said: “The acquisition was a great opportunity to maximise existing CBA investments for the benefit of its customers.
“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.
“We set up x15ventures so that digital native businesses can operate how they’re used to – both culturally and technically – while also getting access to the assets and reach of one of Australia’s leading banks.”
