Suncorp exec-founded neobank Alex raises AUD 10m
Aspiring Australian neobank, Alex, founded by former Suncorp execs, has netted AUD 10.3 million ($7.5m) in an equity capital fundraising round.
Participants included Alium Capital Management and Alvia Asset Partners.
According to the Australian Financial Review, Alex is putting the cash towards marketing expenses and developing its AI-assisted lending algorithm.
The neobank’s last substantial raise occurred in June 2019, a Series A worth AUD 13.6 million. Alex has raised AUD 26 million on total.
Alex offers loans from AUD 2,000 to AUD 30,000. It does not yet have an authorisation from the Australian Prudential Regulation Authority (APRA).
It’s powered by a Temenos core banking system, though the neobank plans to outfit itself with an array of in-house platforms in the future.
Alex applied for a restricted licence in August 2019. “COVID-19 delayed the application process,” CEO Simon Beitz tells the Australian Financial Review.
ARPA resumes granting licences in March 2021.
Originally named Bene, Alex was co-founded by Craig Fenwick, CFO, and Beitz, CEO.
Prior to starting the venture, the two men spent more than ten years working for Suncorp.