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Neobank 86 400 has announced that it has secured a $34-million series A capital raise, bringing its total figure for equity funding to date to $90 million.
The raise was led by international investment bank Morgan Stanley, with funds to be used to accelerate product and feature development, as well as support mortgage book growth, with the bank reportedly intending on growing its loan book from $20 million to $2 billion by the end of 2021.
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Along with Morgan Stanley, investors in the raise range from an Australian superannuation fund, high-net-worth individuals, fund managers and family offices, according to 86 400.
According to the neobank, investors in the raise were drawn in by the bank’s “smart proposition, early customer traction” and its modern technology, products and features.
The bank noted that it has now developed a network of local and global investors, who will be keen to participate in future equity funding rounds.
86 400 CEO Robert Bell stated that the bank is committed to continuing to bring products to the market, having launched seven products since September 2019 and intending to launch another three by the end of 2020.
“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,” he said.
Mr Bell stated that 86 400’s savings offerings, as well as basic banking service abilities, including Apple Pay and Google Pay integration, will see the bank reach 500,000 accounts in the next 12 months at the current rate of growth.
Noting customer needs, Mr Bell said: “We’re also giving them products they would never expect from a bank; tools like account aggregation and Energy Switch that actively help customers save more and budget better.
“All of us want to feel more in control of our finances, particularly in difficult times like these, and we’re delivering smart banking products which do just that.”
[Related: Neobank joins Buyers Choice panel]
