Volt has announced that it has closed a $70-million Series C equity funding round, which was oversubscribed by $10 million beyond the original target of $60 million.
This round brings the neobank’s total funding to $100 million in equity, as well as bringing the company closer to a planned listing on the Australian Stock Exchange later this year, subject to market conditions.
Due to regulatory capital demands of the bank, Volt intends to initiate a Series D equity funding round, focused on investors in the UK and Middle East, adding to existing interest from Australia, Hong Kong and Singapore.
According to Volt, capital raised to date has been deployed in building digital infrastructure, recruiting a team of global digital, data and banking experts, as well as developing Volt’s platform-based banking model.
The neobank has recently launched its first deposit product and aims to have a full range of consumer product and loan products in the market by the end of 2020, before entering the small and medium-sized enterprise (SME) lending space in 2021.
Volt CEO and co-founder Steve Weston stated that the interest received from Volt’s funding rounds is indicative of investors’ interest in the neobanking sector.
“The high levels of interest we are receiving from potential banking partners validates our platform-based business model and the neobanking industry as a whole,” he said.
"The Series D funding round will boost Volt’s regulatory capital reserve and provide funding for the rollout of additional products.”
Mr Weston continued: “Our first deposit product clearly differentiates Volt from incumbent banks.
“It is an account that helps customers save and provides a very competitive interest rate without the limited time bonus period restrictions or the need to meet other bonus conditions like most savings accounts in Australia.
“Key to our ultimate global scale is the development of our platform strategy.”
“We are now raising more capital to invest in the development, integration and onboarding of partners that will open up new customer bases with both Volt-branded and white-labeled banking products,” concluded Mr. Weston.
The funding close comes days after the announcement that Volt has welcomed Julian Sawyer, the co-founder of UK neobank Starling, as an international adviser, assisting in the growth of the Australian platform-based neobank.
At the time of the announcement, Mr Sawyer said: “Given the UK and European markets are several years ahead of the Australian market, there are also many learnings that I can share and the team can apply proactively.
“It was with great pleasure that I jumped at the chance to join such a dynamic and visionary team.”
[Related: Volt Bank welcomes international adviser]