Australian weekly fintech funding round-up: 18 January 2019
These are the fintechs that received funding this week.
No company can run without money and in the fintech space, the way many fintechs secure their finance is through external funding. In this round-up, we look at a range of fintechs that have received funding through a variety of means including crowdfunding and equity capital raising.
One high-profile funding campaign of the week was for neobank Xinja, which reached the $500,000 minimum of its second equity crowdfunding raise in under nine hours. The minimum was reached by opening crowdfunding to current investors, customers and people who had registered interest with the neobank.
Xinja received its restricted banking licence from the Australian Prudential Regulatory Authority (APRA) in December 2018 and has a prepaid card and app in the market as well as a home loan available to family and friends. It plans to launch more products in 2019. The crowdfunding campaign is still open on the Equitise platform, with shares being sold at $2.04 each with a minimum investment of $255. It expects to raise $5 million.
Capify, an alternative finance provider to small- and medium-sized enterprises (SMEs) also secured a sizeable $135 million credit facility this week. The facility will be provided by Goldman Sachs and will be used to support Capify's growth of business loan and merchant cash advance products.
Capify has been operating in Australia since 2007 and has executed over 7,500 transactions for Australian SMEs. CEO and founder David Goldin described the multi-year deal as a landmark achievement which will allow the company to deliver on its growth plans.
As reported by the Australian Financial Review, ANZ has paid $40 million for a minority strategic stake in online home loans platform Lendi. The move makes ANZ the fintech's second-largest strategic stakeholder and will join minority shareholder Macquarie and strategic investor Pepper, among other investors.
Lendi launched in 2013 as an online home loans broker and currently has 37 lenders on its platform. It has settled loans worth close to $8 billion and had $341 billion in home lending on its books in Australia and New Zealand as of 31 September 2018.
The inclusion of N26's venture funding in this round-up is a bonus on two points: it doesn't operate in Australia and it didn't happen this week. Still, becoming the world's most valuable fintech is an announcement of note.
N26 is a European mobile bank operator and on 10 January it announced a successful $300 million in venture funding raise led by Insight Venture Partners. The Series D funding saw its valuation reach $2.7 billion. According to N26, this funding round is the largest private equity financing round for a fintech in Europe and will be used to fund its international expansion plans, including to the US later this year.
- European central banks reject Facebook Libra, accelerate digital currency plans
- “Smartbank” 86 400 launches with a feature that’s a first in Australian banking
- Xinja receives full licence, launches bank accounts
- Revolut Australia hands-on review (after 1 month’s use)
- Australian fintech funding round-up: August 2019