Xinja scores $433m from Dubai's World Investments
Summary
The neobank began seeking out “sophisticated investors” as part of its Series D capital raise earlier this month as a flurry of customers dumped $300 million into its freshly-minted ‘Stash’ savings account with a 2.25 percent interest rate. Xinja then had to announce a freeze on new Stash accounts being opened only a day after launching the capital raise, citing “unprecedented” and “unexpected” deposit inflows and a fresh rate cut from the Reserve Bank of Australia as impacting on its ability to deliver on the 2.25 percent variable interest rate for existing customers. However, it appears Xinja has been playing the long game with WI, noting that Australian advisory firm First Penny Investments helped it secure the funding after two years of discussions. Xinja CEO and founder Eric Wilson said the almost half a billion sum is one of the most significant investments in Australia’s fledgling neobank and fintech community. Xinja has already doubled its headcount to 90 people to meet its promises of service quality delivery - however, Wilson believes the neobank will naturally reach a cap of around 200 staff due to its digital and highly automated environment.