UK software startup TrueLayer has halted Australian operations just 18 months after its arrival.
TrueLayer’s software is an intermediary for other startups looking to use the data available under the the Consumer Data Right (CDR) and open banking regime to develop new fintech products.
While the British fintech unicorn’s API platform currently processes more than half of all open banking traffic in the UK, Ireland and Spain, its progress locally was much slower amid a broader torpor in the roll out of CDR in Australia.
TrueLayer raised US$70m in a Series D raise from investors such as Wise, Coinbase and Uber in April last year and was hoping the ANZ market was its next big opportunity, signing on Regional Australia Bank’s Rob Hale as head of banking in November last year.
The shutdown is believed to have occurred in October.
After contacting TrueLayer‘s Sydney-based head of Australia, Brenton Charnley, Startup Daily received a statement from the company’s UK PR firm say the business had “paused its activity” in Australia.
“This decision reflects a number of factors including the maturity of the open banking market in Australia and the Consumer Data Right regime, as well as global macroeconomic headwinds,” the spokesperson said.
“As a business, we’ve made the decision to double down on opportunities elsewhere, including in Europe. We remain committed to the success of open banking in the region.”
TrueLayer will maintain its local Australian corporate entity, statutory accreditation and industry memberships. The company had partnered with a number of fintechs locally, including Douugh and Monoova as well as data venture MogoPlus.
In September, the company announced it was cutting 10% its team globally – around 40 jobs amid “challenging market conditions”.
CEO and cofounder Francesco Simoneschi said at the time that despite considerable growth the firm broader macro economic conditions, which have seen multiple startups and scaleups shed staff, the company needed to to focus on a “path to profitability, monetisation and sustainable growth”.
The departure of TrueLayer precedes the sudden exit of UK-listed food delivery business Deliveroo last week, with the company declaring it did not have a path to profitability “without considerable financial investment, and the expected return on such investment is not commensurate with Deliveroo’s risk/reward thresholds”.