Up-and-coming proto-bank Xinja has opened a full retail crowdfunding round, allowing the public to invest in the next stages of establishing the digital lender.
Australians can invest as little as $1,000 with the firm expecting at least $500,000 to be injected into its current $10m to $15m funding round.
“Xinja is all about creating a new kind of banking experience – and crowdfunding is part of that. If people want a new kind of bank, this is their opportunity to build their own,” Xinja chief executive Eric Wilson said
Xinja partnered with Equitise for the crowdfunding round. Equitise co-founder Chris Gilbert said there was a huge demand from investors seeking to build disruptive companies such as Xinja.
“We’re thrilled that this truly disruptive neobank will be the first one that retail investors can invest in on our platform. It’s a great fit, with Equitise and Xinja coming together to form the future of digital banking by harnessing the power and amazing potential of equity crowdfunding,” he said.
Xinja had always planned on accessing crowdfunding to give founding customers access to own a part of the business, Wilson said.
“While Xinja already has a number of committed and prominent investors on-board, equity crowdfunding means that others who are energised by the Xinja story can also become directly involved and benefit from our commitment to change the face of Australian banking.”
Funds raised will be used to develop Xinja’s core banking platform which will be launched after the company’s initial product offering, a pre-paid card, is rolled out in February next year.
The firm has applied to become an authorised deposit-taking institution (ADI) with progress possibly fast tracked after
a recent government decision that opened the door for new ADIs. Xinja hopes to launch deposit accounts in the middle of 2018.
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