SYDNEY|NEW YORK -- Douugh Ltd (ASX: DOU) & (OTCQB: DOUUF), the banking ‘super app’ on a mission to help customers manage and grow their money, today announced it has entered into a $20 million equity placement facility agreement with Long State Investments Limited.
Based in New York City, Long State has significant experience in investing in disruptive early-stage public companies in high growth-oriented sectors, including fintechs. The Agreement will provide Douugh with a fully flexible, on demand funding facility. Douugh can nominate Long State to subscribe for newly-issued ordinary Douugh shares under the facility at any time over the next 36 months, up to a total amount of $20m, with the timing, quantum and minimum issue price of the shares issued to Long State under the Agreement entirely at Douugh’s discretion.
Commenting on the funding arrangement, Douugh’s Founder and CEO Andy Taylor said: “We’re on a mission to help everyday people better spend, budget, save and invest their money. The securing of this facility with Long State provides us with tremendous funding flexibility and access to the growth capital needed to further develop our banking super app and accelerate growth.”
“Access to this fully flexible strategic funding facility should enable Douugh to achieve economies of scale and therefore maximise gross margin and profitability, with the timing of the drawing down of funds being completely at our discretion. Further, it grants us the opportunity to capitalise on emerging B2B enterprise licensing opportunities, allowing potential partners to white-label our technology for their own customers' use.”
“We remain focused on optimising our conversion funnel and increasing customer activation and engagement through targeted growth initiatives and the development of new features. Our goal is to unlock the platform revenue opportunity prior to dialing up paid marketing channels, as we work to accelerate our path to unit profitability.” “The pending launch of Crypto and Single Stock trading services are crucial to the banking super app positioning in the eyes of consumers to increase the value of our subscription to accelerate earnings and increase the number of customers using Douugh as their main financial institution.”
Long State’s Managing Director, Philip Ho said: “Douugh is a leading innovator in the consumer fintech segment with its purpose-led approach
to disrupting retail banking. With a strong financial platform and broad base of global partnerships, plus its pending launch of Crypto investing and high-yield DeFi saving features, we believe Douugh now has the necessary product foundation to unlock its revenue opportunity and gain significant market share in the US, Australia and beyond.”