In what is believed to be a record-setting Seed investment round, Dosh, New Zealand’s first digital wallet has raised $5M. The funding was supported by existing Dosh investors with legal support from Kindrick Partners.
This raise will help fund further product innovation and development, enabling the company to advance closer to its vision of giving Kiwis greater financial freedom, control and access to their money, 24/7.
“The significant Dosh raise reflects the material opportunity in New Zealand for a locally grown, digitally focused competitor in the banking services market. We believe there is a gap in the market for Dosh to provide services that give Kiwis greater freedom and control over their money.” Dosh co-founder Shane Marsh said.
Massive investor interest
Dosh’s Seed investment round was described as an oversubscribed one, owing to raging investor interest. This is reflective of the global VC sentiment, where one in five VC dollars went to fintech in 2021. The outlook for the digital wallet fintech sector is forecasted growth to $7Tn by 2027, from $1Tn today.
It follows a Seed funding round that secured $1M which largely went to building out the product and ensuring compliance with New Zealand regulations. The majority of the funds raised came from a private Kiwi investor sharing the same vision and belief of the Dosh founders for the future of payments in New Zealand.
James McEniery, the coFounder, believes that the successful Seed round, which closed in March, reflects Kiwis’ desire for simpler, safer and faster means to make everyday financial transactions between people and businesses.
“The fact this round was oversubscribed gives us enormous motivation moving forward, and it also validates our business model. Kiwis want Dosh, and we’re giving it to them,” remarked James McEniery.
Lagging digital wallet adoption in New Zealand
The market-leading Global Payments Report 2022 by WorldPay has highlighted the importance of digital wallets in driving e-commerce. Furthermore, the convenience of cashless money management is pushing users to seek digital wallets.
New Zealand has been significantly trailing the rest of the world in terms of the adoption of digital wallets, with bank payments overshadowing other payment means. Bank and card payments haven’t been as resourceful to New Zealanders as they often take time to clear. The need for a real-time means of settling payments has consequently increased, though few options have been availed to the population.
A solution for Kiwis by Kiwis
Dosh was launched in 2021 by returning expat Kiwis Shane Marsh and James McEniery. The duo formed MCA Investments to create and launch the digital wallet app after witnessing the global rise in the use of instant payment apps, particularly in their previous offshore base in Singapore, where both were avid digital wallet users.
The smartphone app enables instant payments to businesses as well as interpersonal cash transfers. Money moves instantly, anytime, anywhere, implying that users no longer need to wait until Monday for funds to clear. Dosh is also enabling its users to instantly request payments, split out costs and pay people back at the touch of a button on their phone. The app has been well received by Kiwis the length of the country.
On top of the funding, Dosh is pursuing further developments including a soon-to-be-announced global partnership that will entirely be a gamechanger for Dosh customers. Dosh has the ambition to become the one-stop financial super app in New Zealand, with plans to integrate further capabilities.