{"id":44698,"date":"2023-10-20T15:37:50","date_gmt":"2023-10-20T15:37:50","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/sydney-startup-zipmoney-secures-20-million-in-funding-to-aggressively-turbocharge-growth-plans-startupsmart\/"},"modified":"2023-10-20T15:37:50","modified_gmt":"2023-10-20T15:37:50","slug":"sydney-startup-zipmoney-secures-20-million-in-funding-to-aggressively-turbocharge-growth-plans-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/sydney-startup-zipmoney-secures-20-million-in-funding-to-aggressively-turbocharge-growth-plans-startupsmart\/","title":{"rendered":"Sydney startup zipMoney secures $20 million in funding to \u201caggressively turbocharge\u201d growth plans – StartupSmart"},"content":{"rendered":"
\"ZipMoney<\/div>\n

Sydney-based fintech startup zipMoney has secured $20.6 million in funding through an institutional placement that will see the company \u201caggressively turbocharge\u201d its national growth plans.<\/p>\n

The funding round was oversubscribed and comes from “several leading institutional and sophisticated investors\u201d.<\/p>\n

The ASX-listed startup completed the funding round through the issue of 37.5 million shares at a price of 55 cents each.<\/p>\n

ZipMoney offers a range of digital payment services and \u2018buy now, pay later\u2019 loans, and completed a $5 million backdoor listing on the ASX in September last year.<\/p>\n

The fintech secured a $100 million credit facility<\/a> backed by Victory Park Capital in November last year.<\/p>\n

A turbocharge<\/h3>\n

The large cash injection will be used to provide loan book equity capital and accelerate expansion plans, zipMoney co-founder and managing director Larry Diamond says.<\/p>\n

\u201cWe\u2019re here to build a very large business and need a large amount of capital to do that,\u201d Diamond tells StartupSmart<\/em>.<\/p>\n

\u201cIt\u2019s a bit of an inflection point for us. The ability to raise such a large round really validates our business model in the space.<\/p>\n

\u201cIt\u2019s a turning point. With the significant sum of money we\u2019re able to aggressively turbocharge our roll-out across Australia.\u201d<\/p>\n

The funding will also be used to acquire fellow fintech startup Pocketbook for up to $7.5 million.<\/p>\n

The deal, which is currently in term sheets, would involve an upfront payment of $6.5 million and a further $1.5 million if certain milestones are met.<\/p>\n

Pocketbook is a free money management and budgeting tool app that integrates with users\u2019 bank accounts. After launching in 2013<\/a>, the startup now has over 200,000 users.<\/p>\n

\u201cIt\u2019s a fantastic app,\u201d Diamond says.<\/p>\n

\u201cThey\u2019ve built a strong financial management system for people and it\u2019s a great platform for us to build out our financial management and engagement strategy with customers.\u201d<\/p>\n

Persistence and belief<\/h3>\n

Diamond says zipMoney has enjoyed year-on-year growth of 100% and recently saw month-on-month growth of 159% in April.<\/p>\n

\u201cBack then we were doing $1 million in transaction volume, now we\u2019re doing $10 million,\u201d he says.<\/p>\n

\u201cWe\u2019ve been head down, bum up and working harder than ever.<\/p>\n

\u201cWe still work till 1am every night. We\u2019ve been working harder than ever.\u201d<\/p>\n

It\u2019s a big moment for the founder, who says he was struggling to raise a much smaller amount of funding less than two years ago.<\/p>\n

\u201cTwelve months ago we were running around trying to find $50,000,\u201d Diamond says.<\/p>\n

\u201cPeople didn\u2019t believe in us but we kept hustling. If we were to say we would raise $20 million only a year and a half later those people would\u2019ve scoffed at us.\u201d<\/p>\n

Along with proprietary technology and a whole lot of hard work, Diamond says zipMoney’s success so far has been down to persistence and self-belief.<\/p>\n

\u201cBelieving in yourself and the vision regardless of what anyone else is saying is paramount and so is building a great team,\u201d he says.<\/p>\n

\u201cNever get overwhelmed by the tasks ahead \u2013 break it down into bite-sized tasks.<\/p>\n

\u201cIf we thought about where we were trying to get it would\u2019ve been scary. If you have an unwavering belief in the vision and you put your head down then you will get there.\u201d<\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter,<\/em>LinkedIn <\/em>and <\/em>SoundCloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Sydney-based fintech startup zipMoney has secured $20.6 million in funding through an institutional placement that will see the company \u201caggressively<\/p>\n","protected":false},"author":1,"featured_media":59123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,9,21,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44698"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=44698"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/59123"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=44698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=44698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=44698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}