Jamaican micro-financing firm Dolla Financial Services has raised $425 million from private investors so far this year.
It has also engaged VM Wealth as a financial advisor, an indication that it is looking to launch an initial public offering soon.
Dolla Financial, earlier this month, raised $200 million with an institutional investor. It previously raised $225 million in a private placement brokered by GK Capital in June, bringing the total capital raised this year to $425 million.
CEO of the Dolla Financial Group, Kadeen Mairs, declined to comment on immediate plans to list on the Jamaica Stock Exchange but noted that the company has been tapping the capital markets over the years to raise funds.
“So looking at a public offering to raise equity doesn’t sound like a bad idea,” Mairs said.
Mair said Dolla Financial has been raising capital to further on-lend to its clients.
“There is a constant need in the market for the ‘everyday man’ to have access to funding to grow their businesses at their pace and not at the pace of the lender,” Mairs said.
He added: “To help the economy recover and adjust to living alongside COVID-19, it is important that we fuel the rejuvenation of micro, small and medium enterprises, which are the backbone of the economy”.
Dolla Financial has seen consistent growth in its loan portfolio, which Mairs estimates could total upwards of $750 million by the end of 2021.
The microfinance company, which is owned by Dequity Capital and First Rock Private Equity, generates the majority of its income from loans to clients within the tourism and business process outsourcing industries.
It is, however, looking beyond those sectors for organic growth, through three new products: Medi-pay, which offer clients loan for cosmetic surgery, including body contouring procedures, dental braces and retainer; Four-pay, a buy now, pay later facility, which offers customers shopping online to pay for items in four monthly instalments; and ‘One and Move’, which directly targeted at taxi operators.
“We are projecting at the end of this financial year we will double our loan book from both organic growth and acquisition,” Mairs said.
Dolla Financial has eight branches in Jamaica, with close to 3,000 clients across all locations in Jamaica and Guyana.