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Australian fintech funding round-up: February 2019

Posted: 1 March 2019 6:00 am
News

fintech funding

Companies in Australia's fintech space that received funding this month.

As the second month of the year ends, these are the companies that secured series funding rounds, corporate funding or even crowdfunding to continue to innovate in Australia's fintech space.

Volt Bank

This month, Volt Bank announced that it received an $8.5 million investment from Collection House, an ASX-listed debt collection company. In exchange, Collection House will take a 4.5% stake in Volt.

This comes off the back of another big announcement for Volt Bank which received its full banking licence from the Australian Prudential Regulatory Authority (APRA). While it is yet to launch any products into market, it is expected to launch a transaction account, a savings account, a term deposit, a personal loan and a home loan sometime in 2019.

Splitit

The company was originally founded in Israel and headquartered in New York but has raised AUD$12 million on its initial public offering (IPO) on the Australian Stock Exchange. Similar to buy now pay later platforms Afterpay and Zip, Splitit allows shoppers to pay for a purchase over time in installments. Depending on whether you are using a debit or credit card, those payments can extend up to 36 months.

Splitit says it has almost 350 active merchants and over 80,000 unique shoppers on its platform.

OpenSparkz

OpenSparkz, a Software as a Service (SaaS) platform which powers rewards and offers programs without the need for loyalty cards, has completed its second capital raising. According to an announcement from OpenSparkz, the Australian fintech company attracted new regional and local investors as well as further commitments from founders and original backers.

OpenSparkz closed the seed capital raise oversubscribed with $1.5 million and is now considering a Series A capital raise of up to $5 million in the second half of 2019.

GoCardless

GoCardless, a London-based fintech company that allows businesses to collect direct debit payments globally, has announced a new investment round of US$75 million. This Series E investment takes its total amount raised up to US$123 million. Investors include GV (previously Google Ventures and owned by Alphabet), Adam Street Ventures, Salesforce Ventures and Passion Capital.

The service launched in Australia in late 2018, has signed up more than 40,000 customers internationally and processes more than US$10 billion a year in transactions.

Bonus: Gaingels

This is an extra mention because the investment is not fintech related but the investor group has the capacity to invest in fintech in the future.

The world-first investment vehicle for LGBT founders has made its first investment in Australian brand Nexba. Gaingels, derived from "gay angels" and "gaining from angels" is an angel investing group which invests its funds into LGBTQ-led companies and currently operates in the US, Canada and the UK. Leading naturally sugar-free brand Nexba is its first Australian investment. The $150,000 investment from the Gaingels made up Nexba's Series A capital raise, which is looking to close soon at $6 million.

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