Listed neobank Douugh (ASX: DOU) hopes to tap into the growing Millennial investment space with the proposed acquisition of Australian fintech Goodments for $1.5 million.
Under the all-scrip deal Douugh would purchase the entirety of Goodments and see the fintech's founder and CEO Tom Culver join the neobank's management team as head of Douugh Wealth.
Launched in Australia in 2017, Goodments is a share trading app in the same vein as US giants Robinhood and eToro, giving its Millennial users access to financial markets.
With more than 12,700 users Goodments has a particular focus on sustainable portfolios, EFTs and access to a fractionalised single stock trading of US securities like Tesla, Nike, Disney and Amazon.
Douugh founder and CEO Andy Taylor, one of Australia's Top 100 Young Entrepreneurs of 2020, said the acquisition of Goodments will give its users a simple, low-cost way to invest and grow their money, especially considering how interest rates are currently at a record low.
"Through the delivery of easily accessible, values aligned investment options Goodments has been able to effectively tap into the Millennial and Gen Z investment market that wants strong returns whilst being environmental [sic], socially and ethically conscious," Taylor said.
"With an average customer age of just 24 years old and even representation across females and males, Goodments has been able to demonstrate a resonating wealth offering to a powerful growing market through great technology, simplicity in design and strong through leadership."
In addition, the acquisition of Goodments will accelerate Douugh's planned 'Wealth Jars' feature, which will allow customers to achieve their savings goals by investing money in custom-built portfolios.
DOU will also continue to support the Goodments business locally prior to Douugh's Australian app launch this year.
Goodments founder and CEO Culver said he was excited to join the Douugh family.
"This is an opportunity to form a fantastic partnership built on the shared principle of putting our customer's values and needs at the centre of what we do: delivering high quality, accessible, personalised wealth solutions that fit our customer needs" he said.
"Our ability to connect perfectly aligned investment options with Douugh's smart banking solution will enable us to create a powerful ecosystem that can change how every individual, no matter their experience, thinks about managing and growing their money using disruptive technology."
The acquisition remains subject to the completion of due diligence investigations by both parties, shareholder and board approval, and regulatory approval.
At settlement of the acquisition, Douugh will issue the shareholders of Goodments with $1.5 million worth of fully paid ordinary shares in the capital of DOU in consideration for all of Goodments shares.
Business News Australia