SYDNEY, Australia – Xinja, an Australian neobank, sits at the top after sealing an investment from Dubai World Investors worth $433 million. However, COVID-19 puts the agreement pauses. Despite the halt, it’s ready to unveil a share trading program.
Xinja sealed a deal with Dubai World Investors, and it puts it on top because the agreement was worth $433 million. On the other hand, the pandemic situation paused the deal, and it forced the company to focus on local equity, which is one of the most indefinite economic eras in the history of Australia.
Along with other competitors from the neobank segment, Xinja found themselves in the middle of a worldwide pandemic, which nobody expected.
Eric Wilson, the CEO of Xinja, commented about the situation of Xinja. He shared to Business Insider that COVID smashed the company a little. He also shared the thought of Mike Tyson, a professional boxer. According to Tyson, people have plans until someone punches them in the mouth. Relating it from Tyson, COVID-19 hit them hard, and they have to come up with a new project. The pandemic fared to pack a forceful punch.
Before the pandemic happened, Xinja had a feeling of a title contender with its $433 million investment-belt. This sealed deal was with Dubai-based Emirates World Investments. While countries experience the lockdown around the world, the agreement is about to be the most significant opportunity for an independent startup in Australia. However, it didn’t continue.
The deal kept a savings interest rate that’s market-beating, and it’s at 2.25%, without any attached strings. It already bled cash, yet the pandemic froze the primary source of the company’s financing.
The case required cash, and a local backing worth $10 million put Xinja back in the competition while the CEO waits for the investment to come in the latter part of the year.
Wilson said that it’s on track, and they have no reason to believe that they stay committed. However, if the other company can commit, the backing from the United Arab Emirates (UAE) depositors take a 40%-share in the virtual bank. However, it’s still pending at APRA, the regulator, and foreign investment panel for consent.
The CEO also said that COVID-19 disturbed the entire finance sector, yet neobanks face nearly the most significant hurdles.
Neobanks in the country doesn’t worry about the increasing debts. The silver lining is moving all to credit. Yet virtual banks have their challenges in enhancing products that can go further transactions accounts or essential savings.
On the bright side, Xinja unveiled that the company is working with a unified US share trading program called Dabble, and it’s for clients to develop their capital. The launch is in the coming weeks, and it will change funding. Some of the products of this funding are personal loans and mortgages loans.
As Xinja continues to operate, the company will be able to purchase Tesla stocks. Wilson stated that this neobank didn’t forget the traditional financing products. He also said that it takes time to transform, yet the company is getting there.