Lumi

About Lumi

Lumi operates as an online marketplace for business loans in Australia, providing small and medium-sized enterprises (SMEs) with access to working and growth capital. The company was founded in Sydney in 2018 by Yanir Yakutiel, who currently serves as CEO. Yakutiel, who previously founded another SME lender called Sail Funding, identified a gap in the Australian market for faster and more accessible financial services for small businesses. His background includes roles as a lawyer and financial analyst, and he holds dual degrees in Law and Economics as well as an MBA from INSEAD. He was motivated to create a business that offered flexibility, partly to spend more time with his family.

The company's business model is centered around its proprietary technology platform, which utilizes data to inform credit decisions, enabling a streamlined application and approval process. Lumi offers unsecured and secured business loans, as well as lines of credit, with amounts ranging from $10,000 to $750,000 and repayment terms of 3 to 60 months. Revenue is generated from a 2.5% establishment fee deducted at settlement and the interest charged on the loans provided. The company prides itself on transparency, with the total repayment amount disclosed upfront.

Lumi serves a diverse client base across various sectors, including hospitality, retail, trades, and professional services. To be eligible, businesses must be Australian-registered, have been operating for at least six months, and have a minimum gross annual turnover of $50,000. The application process is entirely online, promising an outcome within hours and funding on the same business day. A key milestone for the company was securing a $31.5 million Series A funding round within three months of its launch, which included setting up a warehouse securitisation program to lower its cost of capital. Subsequent funding rounds, including a $15 million raise in July 2023, have supported its growth and product development.