Australian challenger bank 86 400 has closed a $34 million Series A round, taking total equity capital to $90 million as it aims to build a $2 billion mortgage book.
The raise, led by international investment bank Morgan Stanley, is one of the largest Australian fintech Series A rounds to date and includes investment from an Australian superannuation fund, fund managers, high net worth individuals and family offices.
To date, 86 400 has more than 170,000 accounts on its platform and sees more than 350,000 transactions and balance updates each day. The mortgage book currently stands at $20 million, but is expected to grow rapidly as more brokers are brought onboard.
“At our current rate of growth, we should hit 500,000 accounts on the platform in the next 12 months,” says CEO Robert Bell. “Of course, that will be balanced by growing the lending side of our business and we anticipate having a mortgage book of close to $2bn by the end of 2021.”
Since launching in September 2019, 86 400 has launched seven products in six months and expects to deliver a further three by the end of 2020, says Bell. He claims it is the only retail neobank in the Australian market to offer home loans and shared accounts - which are currently in pilot. .