British software startup TrueLayer shut down Australian operations just 18 months after its arrival.
TrueLayer’s software is a go-between for other startups looking to use the data available under the Consumer Data Right (CDR) and open banking regime to develop new fintech products.
While the UK fintech unicorn’s API platform currently handles more than half of all open banking traffic in the UK, Ireland and Spain, progress has been much slower locally amid a wider delay in CDR rollout in Australia.
TrueLayer raised US$70 million in a Series D raise from investors such as Wise, Coinbase and Uber last April and hoped the ANZ market was its next big opportunity, signing Rob Hale of Regional Australia Bank in November last year as head of banking.
The closure would have taken place in October.
After contacting TrueLayerSydney-based head of Australia, Brenton Charnley, Startup Daily received a statement from the company’s UK PR agency saying the company had “suspended its operations in Australia”.
“This decision reflects a number of factors, including the maturity of Australia’s open banking market and the Consumer Data Right regime, as well as global macroeconomic headwinds,” the spokesperson said.
“As a company, we have made the decision to double down on opportunities elsewhere, including in Europe. We remain committed to the success of open banking in the region.”
TrueLayer will retain its local Australian corporate entity, regulatory accreditation and industry memberships. The company partnered locally with a number of fintechs, including Douugh and Monoova, as well as data venture MogoPlus.
In September, the company announced it would cut its team globally by 10% – about 40 jobs amid “challenging market conditions”.
CEO and co-founder Francesco Simoneschi said at the time that despite significant growth from the company’s broader macroeconomic environment, in which multiple startups and scale-ups have lost staff, the company needed to focus on a “path to profitability, generating of income and sustainable growth”.