New alternative business banking platform Zeller has reportedly raised AUD $6.3m ($4.3m) in a funding round as it aims for a 2021 launch.
The investment was led by Australian venture firm Square Peg Capital, according to a report from The Sydney Morning Herald. Additional support to the round came from Apex Capital and Athena.
Capital from this round will be used to help Zeller develop its products, which include payments and financing tools, and prepare for its launch into market next year.
The company’s co-founder Ben Pfisterer told Sydney Morning Herald that business banking is broken and Zeller is designed as an alternative for small businesses to the big four banks in Australia.
Speaking on the country’s successful business-focused challenger bank Judo Bank, which became a unicorn earlier this year, Pfisterer stated that there is opportunity in the market and Zeller will differ to Judo. One such difference is that it will not offer loans.
He said, “We don’t have a banking licence and have no intention of getting one in the forseeable future.
“We think borrowing and debt is great for some businesses, but really not required by others. We’re looking at solutions which every business needs from how do you get paid to growing your product, your service.”
When the company launches its products in 2021, Pfisterer believes it will be a different market, one which is more open to technology.
Based in Australia, Zeller provides businesses with a platform to get paid, manage cashflow and access money.
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