Digital banking app Douugh has collected $20m in an equity placement facility agreement from Long State Investments.
The deal will allow Douugh to nominate Long State to subscribe for newly issued ordinary shares under the facility at any time in the next 36 months, up to a total amount of $20m.
Douugh’s CEO and founder Andy Taylor said this flexible strategic funding will help Douugh scale and maximise its gross margin and profitability. It will also help it capitalise on global B@B enterprise licensing opportunities, allowing potential partners to white label the technology.
He added, “We’re on a mission to help everyday people better spend, budget, save and invest their money. The securing of this facility provides us with tremendous funding flexibility and access to the growth capital needed to further develop our banking super app and accelerate revenue growth.”
Douugh is a mobile banking app, which offers direct deposits paid two days early, cashback rewards on over 30,000 merchants, money organisation and easy bill management. To ease savings, the platform rounds up every card purchase to the nearest dollar with the extra money goes into a savings account.
The FinTech company recently partnered with TrueLayer to get access to Australian open banking data. Under the agreement, Douugh will pay a fixed monthly fee to TrueLayer for each CDR-connected bank account per active customer.
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