With two Reserve Bank cuts, a host of COVID-19 assistance packages and a plethora of changes to rates and products, it’s safe to say that the past month has been a bit of a whirlwind in the Australian banking sphere.
And amidst that, Australia’s neobanks and fintechs have been making some major moves of their own. So in case you missed them, here’s a quick wrap of the neobank and fintech announcements you’ll want to know about from March and April.
Xinja secures $433 million injection
A little over a month after putting a temporary pause on applications for its Stash savings account - a move which certainly raised a few eyebrows - Xinja made the announcement in late March that it had secured a significant overseas investment.
Dubai-based Emirates’ World Investments (WI) will invest a total of $433 million in Xinja over the next two years, comprising $160 million upfront and a further $273 million which can be drawn down upon by Xinja as it grows.
“We think this is the largest single investment in an Australian neobank or start-up, and combined with exceptional customer acquisition and deposit growth, positions Xinja Bank as a frontrunner in the Australian neobank market,” said Xinja founder and chief executive, Eric Wilson at the time.
86 400 closes Series A capital raise
Fellow Sydney-based neobank 86 400 also revealed some positive funding news, announcing in early April that it closed its Series A capital raise after raising $34 million of new equity in March alone.
That brings 86 400’s total capital to $90 million which, according to CEO Robert Bell, will help the neobank continue to roll out its products at a pace which has already seen it release a Pay Account, Save Account and home loans in less than nine months.
“We’re bringing products to market faster than any other bank in Australia, digital or otherwise,” Bell said. “The funding announced today means we can keep our foot firmly on the accelerator, continuing to build out both sides of the ledger and help even more Australians take control of their money.”
86 400 also revealed that it now has over 170,000 accounts on its platform and that it expects to hit the 500,000 account mark in the next 12 months.
Fintech Douugh to get ASX debut
The Australian-founded fintech Douugh is set to hit the Australian Securities Exchange (ASX) following its acquisition in late March by ASX-listed telecommunications company ZipTel.
According to a statement released to its Australian waiting list yesterday, Douugh is looking to raise $3.5 - $5 million from investors in Australia and New Zealand and will list on the ASX as Douugh Ltd (ASX:DOU).
While Douugh isn’t currently available to Australian consumers, it has already rolled out a bank account and debit card in the United States.
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