Cuscal-backed challenger bank 86 400 has brought on its first outside investors, raising a total of $34 million in new capital.

The Series A capital raise led by Morgan Stanley raise brings its total capital to $90 million.

The investors included fund managers, an Australian superannuation fund, high net worth individuals and family offices, the neobank said.

It is one of the largest Australian fintech series A rounds to date.

“It gives us a vote of confidence in us and what we are doing,” chief executive Robert Bell told AAP.

The neobank has grown to more than 170,000 accounts since launching in September and says it is on track to hit 500,000 accounts in the next 12 months, with a mortgage book of close to $2 billion by the end of 2021.

The capital will be used to support business operations as the bank is still “some way off to being self-sustaining,” Mr Bell said.

“This means we don’t slow down at all, we just keep our foot firmly on the accelerator,” he said.

Like neobank rivals Xinja, Volt Bank and Up, 86 400 bank eschews physical branches in favour of an app-based platform built on cloud computing, meaning the coronavirus crisis has not disrupted its business too much, although all staff are working from home.

Mr Bell said the bank is looking at an initial public offering in about 18 to 24 months.

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