Telecommunications firm ZipTel has agreed to acquire Douugh, an Australia-based digital bank backed by community bank Choice Financial and financial exchange service Monex, according to a stock exchange filing.
The deal is a reverse merger that will involve ZipTel rebranding to Douugh and taking on its business. ZipTel is listed on the Australian Securities Exchange and the merged company plans to reapply for its position once the transaction is complete.
Founded in 2016, Douugh operates a neobank that makes use of artificial intelligence to help customers increase their savings and save money responsibly. It has also expanded into the US, opening an office in New York City.
The company received an undisclosed sum from Choice Financial in 2017 that increased its total funding to $2.5m. Monex added an undisclosed amount in June 2019 when Douugh announced plans to float on the ASX in a $6.9m initial public offering.
