Digital bank Alex has raised $20 million in a series C that values the neobank at more than $120 million
The raise came from existing shareholders and new investors, including Washington H. Soul Pattinson, Regal Funds Management, Wunala Capital, and SG Hiscock & Company, topping up the $34 million already raised.
Founded in 2018 by CEO Simon Beitz, a former Suncorp exec, and CFO Craig Fenwick, the pair will use the fresh cash to fuel growth from an increase in the current wholesale facility, and the ramp‐up of its note program.
The latest cash injection comes two months after the fintech was granted a restricted authorised deposit-taking institution (Restricted ADI) licence from the Australian Prudential Regulation Authority (APRA) in July.
Alex offers rapid personal loans of up to $50,000 via brokers and white-labelled digital channels that only take 180 seconds to apply, with an answer in 60 seconds and the cash available within hours.
The lender is now looking to move into the small business market and plans to launch new products, including digital overdrafts and term deposits in the next 12 months.
Chief Financial Officer Craig Fenwick said there was a market opportunity their fintech serviced.
“When combined with the wholesale funding already secured from Sturt Capital, and the performance of our loan product in the market, this equity raise is further testament to the strength of our accelerated growth strategy, and the gap in the market for a lending‐led digital bank,” he said
The Series C funding round was supported by Alex’s advisors, Clinton Capital Partners and Findex.
Alex has also added experienced banking and technology directors Kathy Ostin and Alex Twigg to the board as NEDs, with Greg Moynihan signing on as Alex chairman.
Alex is targeting around 3% of the prime consumer lending market with fast credit before scaling to offer a broader range of banking services. The business processed more than 10,000 loan applications in the first six months of 2021.