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Oz Challenger 86 400 embarks on Series B raise

A year after bagging its license, Australian challenger bank 86 400 is already working with existing investor Morgan Stanley to plot another funding round.

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Oz Challenger 86 400 embarks on Series B raise

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The Series B capital raise is on the starting blocks just three months after 86 400 closed its $34.5 million Series A. It has raised a total of $90 million

Chaired by British banking pioneer Anthony Thomson, 86 400 is one of a host of digital-first lenders running to disrupt an Australian market dominated by the Big Four.

The startup already has more than 225,000 accounts on its platform, has more than $300 million on customer deposits, and has processed more than $1 billion in transactions.

Having now rolled out its suite of everyday banking features, the firm is planning to fuel growth by entering new segments, including shared finances and delivering further insights into individual spending and savings patterns.

To help fund development and grow its 109-strong team, the bank is about to begin its Series B raise, with Morgan Stanley onboard to assist and "strong early interest" from local and international institutional investors.

Robert Bell, CEO, 86 400, says: "With so much economic uncertainty at the moment, it’s more important than ever Australians feel on top of their finances.

"Our next phase of growth is going to do just that - deliver the features they wouldn’t expect from a traditional bank, which will help customers budget better, spend wiser and save more."

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