In what amounts to a change of control, Xinja Bank have lured Dubai-based World Investments to commit A$433 million in capital.
WI will make an initial investment of $160 million "immediately", the bank said in a media release posted to its website yesterday.
WI will invest the remaining A$273 million "in multiple tranches as Xinja Bank's growth requires over the next two years".
The investment is "subject to relevant approvals", presumably from APRA and the Foreign Investment Review board.
Xinja Bank has $24.7 million in net assets at the end of December 2019 an offer document for a separate capital raising underway via the Equitise platform shows.
The neobank bruised its market position three weeks ago when it shut down its high-yield Stash account.
The bank is still paying 2.25 per cent on these accounts for the early adopters, and with the cash rate now at 0.25 per cent it will be a world of pain in the short term for WI.