SME challenger bank Judo Bank is an even bigger unicorn after scooping up $284 million in a round 4 capital raise. The raise values the bank, founded in 2016, at $1.6 billion, an increase of 60% on its valuation following a previous raise seven months ago. Judo co-founder and co-CEO, David Hornery, said more than 60% of the funds raised came from the new investors, including UniSuper, while over 70% of the largest existing investors returned for the latest round “The final tally for our Round 4 capital raise was $284 million, with the breadth and depth of demand coming in at the very top end of our expectations,” he said. “Given this raise was completed during some of the most challenging market conditions in a generation, due to COVID-19, we are absolutely delighted with this result.

Giants like Uber, Airbnb, Snapchat and Pinterest have been part of the ‘unicorn’ club for years – where a private company is valued in the billions – but there are only three Aussie companies that boast a spot on the list, with a new one sliding into the exclusive group last year. Judo Bank – joined the ranks in 2020 with a valuation of $1.6 billion, representing an increase of over 60 per cent in value over the last seven months during the COVID pandemic. It's the first of the Aussie challenger banks to reach the coveted position.

The federal government should consider moving away from hard end dates for pandemic support for small business, as the economy braces for a “real testy period” of company hardship and collapse in the June quarter. That's the view of Judo Bank joint chief executive Joseph Healy, whose challenger bank focuses on the small and medium business sector. He highlighted that insolvencies were running about 35 per cent below comparable periods - due to COVID-19 support packages - meaning there would be a sharp bounce as measures were withdrawn, with the possibility the number of businesses folding could exceed that by a further 25 per cent. “The period between the end of March and the end of June in particular is going to be the real testy period,” Mr Healy said.