One of Australia’s underdog neobanks has received hundreds of millions in funding from a global banking industry investor.
Xinja received $443 million from Dubai-based Emirates World Investments, with an initial investment of $160 million.
“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 Bank founder and chief executive Eric Wilson.
The remaining $273 million will be available to be drawn down in multiple tranches as growth requires over the next two years.
The investment was secured after two years of discussions.
“We are very happy to welcome World Investments as investors in Xinja Bank,” Mr Wilson said.
“WI personifies ‘smart money’. These are investors who bring deep skills and knowledge in banking to help us grow and be successful.”
Xinja launched in May 2017 and now has more than 45,000 accounts and more than $450 million in deposits. It plans to launch home and personal loans later this year, but recently had to hit pause on the opening of new Stash savings accounts due to the precipitous drop in interest rates.
The company’s Stash accounts attracted more than $400 million in their first eight weeks.
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