FinTech: Aussie Telco Software Company ZipTel Acquires Financial Wellness Company Douugh Ltd
ZipTel will morph into a financial software and services company.
Ziptel Ltd (ASX: ZIP), an Australian owned and operated telecommunications business that provides international roaming and calling solutions, is changing its business model. It is acquiring the entire share capital of Douugh Ltd, a fintech that helps people achieve financial wellness. On completion of the acquisition, ZipTel’s name would change to ASX: DOU. In this new avatar, ZipTel would become a financial software and services company. (Kalkine Media)
Douugh is a consumer “neobank.”
It uses artificial intelligence (AI)-enhanced solutions to streamline traditional banking processes. It assists customers to stay financially stronger via its subscription-based financial wellness platform. The platform independently assists clients in paying sensibly, pay off debt, save more & build up wealth using a smart bank account along with a debit card.
For the acquisition, ZipTel would issue 500,000,000 paid-up shares at a notional issue price of $0.02 each to the shareholders of Douugh. The company will also issue 500,000,000 performance shares in ZipTel to the shareholders. On the successful achievement of certain milestones, these performance shares will each convert to one ordinary share.
Thereafter, the new company could raise between $3.5 million to $5 million through an IPO and relist on the ASX.
The acquisition of Douugh, the issue of share capital and IPO would help to provide the new company with working capital, a fresh board of directors, and a new, high-growth business opportunity.
“We believe that the current business model operated by banks and neobanks today is outdated,” says Douugh on its website. “We are developing a radically new banking model, centered around helping you achieve your goals, live a happier life and achieve financial freedom.”
The fintech’s partnership with Choice Bank, Member FDIC, provides protection of deposits up to $250,000. An app allows the user to open an account in minutes using their smartphone. It provides a Mastercard debit card linked to the account. Douugh has no minimum balance requirements, no monthly or service fees, no overdraft or transfer fees and supports Apple Pay. It allows bank transfers to friends and family with zero fees.
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