The platform exchange group has confirmed that it is set to secure up to a quarter of the consumer-focused artificial intelligence company Elula.
Founded in 2017, Elula offers AI and machine learning software specific for the finance sector that’s geared towards customer retention and customer acquisition.
These products include an AI-based software product that predicts which home loan customers will refinance or sell their property within the next three months, and another that forecasts which financial institution a customer would most likely seek for additional products and services.
According to PEXA Group Limited (PEXA), its data and analytics outfit, PEXA Insights, will be securing this minority stake in the AI start-up.
This deal comes roughly three months after PEXA Insights revealed it had made its first-ever acquisition, securing a 38 per cent stake of Landchecker – an “all-in-one source of property information” start-up.
PEXA has said that under this new arrangement with Elula, which also includes a strategic partnership and is expected to complete by 30 June, both outfits will be able to develop a “more holistic view of critical lending and refinance consumer behaviour”.
The group has also said that this deal is expected to enhance PEXA Insights’ existing property data.
Speaking of the acquisition, PEXA chief data and analytics officer Scott Butterworth commented that it is critical for the platform exchange group to identify opportunities that extend its “offering and enhance the property ecosystem to best meet the needs of Australian consumers”.
He added that PEXA’s “strong financial institution network, credibility, and additional market-wide refinancing data” will be able to assist the start-up in gaining greater access to the major banks, while also strengthening its product suite.
Both of Elula’s co-founders and co-chief executives, Josh Shipman and Sarah Russell, said that this deal aligns with the start-up, in both its initial vision and current capacity.
“Our goal, since we started, has been to make a meaningful and positive difference to businesses through the use of AI,” Mr Shipman said.
“We’re excited by what the PEXA partnership will bring to further achieving this goal. Elula is delighted to be partnering with PEXA and this investment will allow us to accelerate our strategic growth plans by bringing new products to market.”
Ms Russell added: “This investment by PEXA brings together two leading data businesses.
“It will allow us to further enhance Elula’s proven product offering and develop new ways to add value for customers in an ever-changing environment.”