Xinja launches capital raise to fund lending ambitions

Xinja has launched its series D capital raise, which the neobank claims is open for “sophisticated or wholesale” investors, to be made via the Equitise investment platform.

According to the lender, funding from the latest capital raise will be utilised to build its capacity for customer lending.

Shares are available for “sophisticated” investors, and are priced at $4.08 per share with a minimum investment of $20,400.

Xinja Bank founder and chief executive Eric Wilson stated: “We would like to have done another equity crowdfund to open this to all our customers.

“However, equity crowdfunding regulation prevents us from doing that. 

“As part of our recent submission to the Australian Senate [select committee on financial technology and regulatory technology], we recommended that this restriction be lifted.”

To date, Xinja has raised around $70 million total, from Australian and offshore investors, through its series A, B, C and the first 40 per cent of series D funding rounds.

This included two equity crowdfunding rounds, the first held in January 2018, and the second in January 2019, both of which were also in partnership with Equistise.

The announcement comes as Xinja reached over $300 million in saving deposits, within just seven weeks of opening the “Stash” savings account to customers.

Since the neobank’s official public launch in September last year, Xinja has accumulated 25,000 customers and more than 41,000 accounts.

Mr Wilson stated the customer response has been “massive” and a “big vote of confidence” in the neobank’s style of banking.

“People expect seamless technology in almost everything they do daily: from ordering food, to booking holidays or a ride home,” Mr Wilson said. 

“Xinja is in that category. We have built a bank from scratch, where the technology is intuitive and fun, and that offers a better way to bank.”

[Related: Xinja ‘Stash’ account reaches $200m]