Alex Bank has successfully completed a $20 million capital raising, providing the digital bank with additional funding to support its long‐term vision of making banking simpler for Australians.
The Series C funding round was supported by Alex’s advisors, Clinton Capital Partners and Findex, and values the award‐winning bank at more than $120 million. The company is generating revenue, and this capital adds to the $34 million already raised from investors to support its growth strategy.
Alex’s latest raise combines follow‐on investment from its existing shareholders and new investors, including Washington H. Soul Pattinson, Regal Funds Management, Wunala Capital, and SG Hiscock & Company.
Chief Executive Officer and Co‐Founder of Alex, Simon Beitz, said “This latest capital raising is proof of the investment community’s strong support of Alex’s fast, simple and fair offering ‐ something that is sorely lacking in the market.”
Alex is meeting the needs of borrowers that the old banks have forgotten, offering customers risk‐adjusted loans of up to $50,000. It is broadening its market to small businesses, and will launch additional products including digital overdrafts and term deposits in the next 12 months.
Alex is Australia’s most awarded new bank, having received seven awards, including a Canstar 5‐Star Rating, and Money Magazine’s “Non‐Bank Personal Lender of the Year” award. It has also received awards from Mozo, Ratecity and Infochoice, and was twice named as a finalist in the “Best Risk‐Based Personal Loan” award category by comparison site Finder.
Alex distributes its loans via brokers and digital channels on technology platforms which enable a customer to apply in three minutes, receive an answer in 60 seconds, and qualify for funding within hours.
Alex received its restricted banking license from APRA in July 2021 and is focused on accelerating the growth in its loan book. Funding is available to fuel growth from an increase in the current wholesale facility, and the ramp‐ up of its note program.
Chief Financial Officer and Co‐Founder, Craig Fenwick, said “When combined with the wholesale funding already secured from Sturt Capital, and the performance of our loan product in the market, this equity raise is further testament to the strength of our accelerated growth strategy, and the gap in the market for a lending‐led digital bank.”
In line with its growth strategy, the company has also added Chair Greg Moynihan, and Non‐Executive Directors Kathy Ostin and Alex Twigg to its Board, all of whom have extensive experience in banking and technology.
About Alex
Alex was founded in 2018 by seasoned industry professionals Simon Beitz and Craig Fenwick with a mission to revolutionise banking in Australia by focusing on what matters to customers – speed, simplicity, fairness and a more human approach to banking products and services. Its team of energetic bankers include a board of diverse and experienced corporate professionals and its shareholders are some of Australia’s most respected private and corporate investors.