Early-stage investment firm Antler Australia recently backed a new cohort of startups as part of its ongoing program to build great local tech companies.

Startup Daily shares the details of each venture in the “Antler Investor Memos” series, which is designed to give you a quick, incisive insight into the startups and people involved, with many seeking follow-up capital beyond the initial pre-seed investment from Antler.

Company Name: Chippit

Date of incorporation: 2022

Stage of business: Pre-seeding

Founder: Eli Muse

Current investors: Investment in antler, portola and angel

Currently increase: Yes

Company

Over a quarter of a million dollars is the average debt of an Australian household, which grew by 7.3% last financial year, according to the latest data from the Australian Bureau of Statistics (ABDOMS). All this while family budgets continue to be squeezed by the rising cost of living.

social money app, Chippit, seeks to eliminate the problem of persistent debt to help people with low bank accounts save money and access credit without hidden costs. Instead of a bank account, Chippit is a platform that empowers people to save, spend and access interest-free loans from those they trust within their own social network.

The peer-to-peer platform invites daily savers to create a “savings group” of 3 to 10 people, such as trusted family and friends, who collectively contribute to a savings goal. These groups often set up a revolving direct debit order, where members take turns receiving money at an agreed time. This acts as an interest free loan for those early in the rotation and savings for the members later in the rotation.

All funds transferred through Chippit are held securely by Cuscal, an Australian Depository Institution (ADI).

By providing affordable access to capital, Chippit empowers individuals to build a stronger financial future while strengthening the relationships that matter most to them. Unlike other lending models, Chippit extends access to credit to underbanked demographics, including international students and migrant workers, to create a more inclusive financial system.

Antler investment thesis

“As the rising cost of living continues to put pressure on Australians, disproportionately impacting those with limited financial security. Chippit’s peer-to-peer approach is a powerful tool to help people achieve their savings goals with those they trust,” said Cath Rogers, Antler Australia Partner.

“Eli combines the lived experience of trying to access savings and credit products as a migrant, years of financial services consulting and genuine social motivation, as evidenced by his candidacy for city council. He thoroughly understands the challenges traditional lending models can have and is a serial entrepreneur with the strategic know-how to develop a platform that harnesses the power of collective action.”

Traction/milestones, so far

Since the official launch of Chippit last month, the app has been downloaded more than 6,000 times. Before the app was launched, Chippit was in the top 50 Australian startups of 2022.

In addition to its industry recognition, Chipped has built relationships with some of Australia’s largest banks and has significant business partnerships in the works.

The social banking app is currently fundraising and a third of the goal has been secured, including VC pledges. In fact, one of Chippit’s first users has become an angel investor in the round.

Latest financing

Antler preseed

Use of Funds

Antler’s initial investment supports Chippit to expand its workforce with technical talent, in addition to accelerating the development of key product features. With its growing waiting list, Chippit is focusing on serving user growth.

Founders say

“People have been using social savings circles for centuries to save and access money in Japan, Indonesia, France, Sweden, India and beyond,” said Eli Muse, founder of Chippit. “Chippit leverages the same ethos supported by next-generation technology.

“The current financial system excludes at least two billion people, while another two billion have limited access to services and often have to pay high fees or interest rates. In stark contrast to some who pay significantly lower rates for the same services,” he continued.

“Our vision is to create a financial system that is accessible and equitable to all, where no one is excluded or disadvantaged based on their socioeconomic status. Our goal is to empower individuals and communities around the world to take control of their finances and improve their lives, promoting a more inclusive and sustainable global economy.

“By providing affordable access to capital, Chippit empowers individuals to build a stronger financial future while strengthening the relationships that matter most to them. Unlike other lending models, Chippit extends access to credit to underbanked demographics, including international students and migrant workers, to create a more inclusive financial system.

“With Antler’s support, Chippit is connected to a global community of early stage startups and has access to vetted talent, startup resources and fundraising support.”

What’s next?

Antler, an early-stage global VC, unveils its latest investments in aspiring Australian founders and startups. With 100 investments in start-up companies, Chippit is one of the most recent portfolio companies.