Australian neobank Volt bags $11.6m in extended series E funding

Australia’s Volt announced that it has received A$15 million (US$11.6 million) in its extended series E fundraise from local mortgage aggregator Australian Finance Group (AFG).

This pushes the total capital raised to date in the neobank’s ongoing round to A$37.7 million (US$29.1 million), according to a statement. However, it has extended the round’s targeted amount to A$85 million (US$65.7 million).

Volt founders Luke Bunbury (left) and Steve Weston / Photo credit: Volt

Volt also said it has formed a strategic alliance with AFG that would allow the latter to leverage Volt’s banking-as-a-service (BaaS) offering to provide digital mortgage products to AFG’s network of over 2,975 brokers. The two companies plan to develop and distribute more products in the future, including personal and business loans.

AFG will also gain access to a white-label personal finance manager (PFM) app powered by Volt, which will help AFG’s customers better manage their finances. The app will also allow its brokers to provide in-app home loan applications in the future.

After the completion of certain conditions, a pilot program for the BaaS and PFM products will be scheduled within the last quarter of 2021 and both offerings are expected to be available in the first quarter of 2022.

“This alliance will deliver significant value to both companies as we combine Volt’s technology with AFG’s vast distribution footprint to deliver competitive products to the market and streamlined digital solutions for brokers and their customers,” said AFG chief executive David Bailey.

Additionally, Volt has announced the appointment of former chairman of HSBC Bank Australia, Graham Bradley, to serve on its board as chairman. Volt’s current chairman John Masters will become deputy chairman and chair of the audit committee.

Currency converted from Australian dollar to US dollar: US$1 = A$1.29.