Wisr are now approaching $70m in loans written. That’s a...

Wisr are now approaching $70m in loans written. That’s a quarterly run-rate of $17-$18m given they were at $51m last quarter. So call it ~$6m/month, allowing for the fact that December might be a bit stronger than usual due to seasonality of personal loans.

One of the well known market leaders is Society One, they are doing about $14m of loans a month according to a recent update.(https://www.societyone.com.au/uploads/media/SocietyOne-becomes-first-Aussie-P2P-lender-to-reach-500M-in-lending-sets-sights-on-1B.pdf)

Society One was last valued at ~$200m in their most recent round and is backed by a list of billionaires and media companies.

WZR is valued at $22m.

So WZR is writing half the volume of loans but priced at just 1/10th the valuation. Put another way, Society One is valued at 0.9x loan originations while WZR is valued at 0.3x. And WZR is fast approaching Society One.

You could argue Society One is overvalued, but that is a massive discrepancy. WZR quickly approaching one of the market leaders and are the fastest growing in their category, but their equity valuations remain miles apart. I think WZR is just completely under the radar. Although there are some savvy investors now on the register - Alceon, Macquarie, Adcock and a couple of other smart funds joined at the 5c placement.

If Society One IPO this year (as was rumoured last year in AFR) then the valuation gap will become obvious to the broader market. That might help close the gap.

They are both in a space that should have plenty of tailwinds in 2019. The opportunity for growth is just huge. I think if WZR can sustain this rate of growth and (most importantly) credit quality then there is plenty of room for upside.

If its accompanied by strong news flow & new products and partnerships then it will go on a nice run.

10c would not be unreasonable.