Australia’s first neobank, Volt Bank Limited (Volt) has closed a $70m Series C equity funding round, which was oversubscribed by $10m beyond the original target of $60m.
The round lifts Volt’s total funding to $100 million in equity, and brings Volt a step closer to a planned listing on the Australian Stock Exchange in late 2020, subject to market conditions.
Due in large part to the regulatory capital demands of a bank, Volt is kicking off a Series D equity funding round. The focus of this round will be on investors in the UK and the Middle East, to add to existing interest from Australia, Hong Kong, and Singapore.
What does this funding mean for Volt?
Capital raised to date has been deployed in building digital infrastructure, recruiting a team of global digital, data and banking experts, and developing Volt’s innovative platform-based banking model.
Volt has recently launched its first deposit product and aims to have a full range of consumer deposit and loan products in the market by the end of 2020, before entering the small and medium enterprise (SME) space in 2021.
“The high levels of interest we are receiving from potential banking partners validates our platform-based business model and the neobanking sector as a whole,” said Steve Weston, CEO & Co-Founder of Volt Bank.
“The Series D funding round will boost Volt’s regulatory capital reserve and provide funding for the rollout of additional products. 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.
Volt was the first Australian neobank to receive an unrestricted banking license (ADI) early in 2019. It has now grown to 160 staff working out of its North Sydney-based office, and is expecting to grow to over 200 over the next twelve months.
It recently announced a ‘no catches’ 2.15 per cent per annum variable interest rate on the Volt Save account that it launched to a selection of its public waitlist last month, and will launch to the broader public after beta testing.