Media Release:
Xinja to launch second equity crowdfunding

  • Investors invited to register interest in Xinja’s round two equity crowdfunding
  • Round 1 was Australia’s first and most successful equity crowdfund to date
  • Xinja, which is building a 100% digital neobank, aims to raise up to $A5m with shares valued at $2.04 each & a minimum investment of $255
  • Round one raised $500,000 within hours of opening and a total of $2.7m with shares priced at $1.25

SYDNEY, Australia — December 3, 2018

Xinja, which is building a 100% digital bank or ‘neobank’ designed for mobile, is inviting potential investors to register their interest in its second equity crowdfunding, which will get underway early in 2019.

The offer, through Equitise (with whom they partnered for the first round), is targeting a raise between $500,000 and $5 million. Shares will be priced at $2.04.

Xinja is an independent, Australian-owned start-up that aims to give bricks and mortar, old-style banking a serious shakeout. It won’t have bank branches and it has been built with feedback from customers about how they want to bank.

Xinja launched Australia’s first equity crowdfunding, which closed in March this year, hitting a targeted minimum of $500,000 within hours. It raised a total of $2.7 million before the offer closed, signalling very strong interest from small investors.

“We are very keen for smaller investors to own a piece of the action,” said Xinja co-founder and chief executive Eric Wilson. “We want them to be in this from the ground up. We want their feedback and input. We want people to be involved.”

More than 22,000 people have signed up for Xinja’s app and tap-and-go prepaid  card. The Xinja app lets people track their daily spend, split costs or bills easily with friends and top up their account instantly.

Xinja charges no card or ATM fees at home or abroad (although local ATM providers may charge a fee), and it refunds 100% of currency conversion fees.

The card can be frozen with a swipe, users can check their balance from outside the app, and easily access customer service via chat. The card is currently in use in more than 70 countries as a travel card.

“We want to bring to banking the very best in technology that allows people to quickly and easily make good decisions about their money,” Mr Wilson said. “Most people don’t want to walk into a bank branch. They expect to be able to bank using their mobile. And it should be seamless and fun.”

Xinja counts Brett King, a global neobank guru, as a board adviser, and Tesla engineer Thomas Vikstrom as a member of the Xinja Board. Neobanks have grown swiftly in Europe, USA and the UK. In Australia regulatory changes have opened the pathway for new independent players, which means Xinja can bring significant change and compelling competition to the banking sector.

It’s time Australians had access to a new kind of bank. One that serves their interests.” Mr Wilson said.

Xinja has an Australian credit licence, and has applied for a restricted banking licence, and hopes to be able to work towards attaining a full banking licence soon.

The equity crowdfunding will open in the New Year. Register interest to take part at equitise.com/xinja-raise.

Fast facts on Xinja’s round one equity crowdfunding campaign

  • The largest number of investors, 26.5%, invested $250
  • Shares were priced at $1.25 each
  • Minimum spend was 200 shares, worth $250
  • 1222 investors bought $2.7 million worth of shares
  • 25-34 year olds invested most frequently, but 55-64 year olds invested the most
  • 67.6% invested $1000 or less
  • 82.4 % of investors were men
  • The greatest number of women investors were aged between 25 and 34
  • Xinja had aimed to raise $500,000 but passed this mark within hours of the fundraising opening and raised $1,000,000 in a week.

For further information please contact:

Michelle Innis

P&L Corporate Communications

61 2 9231 5411

61 414 999 693

You can download this press release as a PDF here.

 

Please note: Like any investment, Crowd-Sourced Funding (CSF) is risky. Investors may lose their money and the business may not achieve its objectives. You should consider the CSF offer document and the general CSF risk warning contained in the offer document in deciding whether to apply under the offer. Information about this offer will be set out in our offer document which will be available as soon as the offer opens. You should read this to understand potential risks before deciding to invest in us. For more information, click here.

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