Douugh is the latest Australian fintech to give up on ambitious international expansion plans, announcing that it has “initiated the wind-down of its US business”.
Douugh is a provider of app-based personal financial management tools. At last report, its US business had close to 100,000 customers and more than US$30 million of cash deposits.
It launched the Australian version of its PFM app last month, offering an automated micro-investing service. The company has plans to add consumer banking products to the app but was working with failed neobank Volt to develop this part of the offering.
In a statement accompanying the release of its December half results, the company said: “The company is in the final stages of development of its reimagined card and account product to help Aussies smooth their cashflow and increase investing velocity on the platform.”
The banking part of the service is scheduled to go live in the June quarter.
Douugh chief executive Andy Taylor said he has learned some lessons from the US experience and extensive consumer research.
Investors will certainly hope some lessons have been learned. Revenue in the December half was just A$8,700 and the loss for the half was $5.1 million.
Cash used in operating activities was $1.7 million. The position would have been worse if the company had not received a $2.2 million government research and development grant.
The company has cash and cash equivalents of $3.4 million and net assets of $1.3 million.
The company was incorporated in 2017 and was listed on the ASX in 2020 via a reverse takeover by telco ZipTel. Accumulated losses stand at $34.2 million.