86 400 raised $34 million in March, bringing its total capital to $90 million. Morgan Stanley led the raise, which included investment from a “superannuation fund, fund managers, high-net-worth individuals and family offices.”
“We’re bringing products to market faster than any other bank in Australia, digital or otherwise,” said CEO Robert Bell. “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.”
86 000 has more than 170,000 accounts on its platform and sees more than 350,000 transactions and balance updates each day.
“At our current rate of growth, we should hit 500,000 accounts on the platform in the next 12 months,” Mr Bell said. “Of course, that will be balanced by growing the lending side of our business and we anticipate having a mortgage book of close to $2 billion by the end of 2021.”
86 400 has launched seven products since September 2019, and plans to deliver three more by the end of 2020. It is currently the only retail neobank in Australia to offer home loans and shared accounts, which are currently in pilot. Fellow neobanks Volt and Xinja are both planning on launching home and personal loans in 2020.