Xinja to finalise the funding deal with World Investment Group

Tuesday 10 November 2020 14:13 CET | News

Australia-based neobank Xinja has announced that it is working closely with Dubai-based World Investment Group (WIG) to finalise the AUD 433 million funding deal announced in March 2020.

The deal should alleviate concerns from its auditor about its ability to stay solvent. In its latest financial statements, Xinja’s auditors PWC said the neobank is highly dependent on raising additional capital to fund its development and maintain its capital base above prudential requirements. This was despite Xinja raising AUD 55 million during 2020.

Xinja said the bank raised AUD 10 million from investors in September 2020 and it is anticipating further fund raising from investors, including the WIG deal that was delayed by the pandemic. The lack of funding meant Xinja had to preserve cash and delay revenue-generating services like its loans business that would finally utilise the AUD 500 million of deposits it is paying interest on.

Xinja was one of the neobanks to be given a licence in 2019 from the Australian Prudential Regulation Authority (APRA) with plans to disrupt the retail banking sector.

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Keywords: Xinja, World Investment Group, online banking, fintech, neobank, Australian Prudential Regulation Authority, investment, Australia
Categories: Banking & Fintech
Countries: Australia
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Banking & Fintech

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