Australian finance firm ColCap Financial has acquired an 80% stake in digital lender Molo in a move that will lead to further expansion in the UK.  

Sydney-based ColCap says the move, for an undisclosed sum, will see it “leverage Molo’s digital expertise” while “accelerating its international expansion” into the £310bn UK mortgage market.  

It adds that Molo, founded in 2018, will continue to operate as an independent company under the current management team, led by co-founder and chief executive Francesca Carlesi.  

ColCap says that Molo will benefit from its “depth of funding and mortgage product expertise to capitalise on its growth potential”.  

The Australian lender was founded in 2006 and has a loan portfolio of over $12.4bn. It runs a wholesale lending unit, Origin Mortgage Management Services, a retail brand, Homestar Finance, and a broker operation, Granite Home Loans.  

Molo uses its proprietary technology platform to offer borrowers access to mortgage loans via a direct online channel. The business has originated over £270m of buy-to-let loans since it was established five years ago.  

ColCap’s stake in Molo comes after the firms formed a partnership in July that they said would lead to a greater UK presence.  

The Australian firm adds that it has recently began lending in the UK under the Molo brand.  

ColCap co-founder and chief executive Andrew Chepul says: “Through a combination of Molo’s digital distribution capabilities and ColCap’s funding and mortgage product structuring expertise, we look forward to making significant inroads into the UK’s large addressable market.”  

Molo’s Carlesi adds: “This transaction marks the start of an important new chapter for Molo, allowing us to expand our reach and accelerate our growth. Together we will continue to innovate our products and deliver exceptional levels of customer service.”