Modulr raises £14 million investment led by Frog Capital to fuel growth

  • New investment will accelerate its tremendous growth, customer momentum and innovation in commercial and wholesale.
  • Capital provides global opportunity as B2B transactions processed by pureplay digital operators will reach $14 trillion by 2023, up from $6.7 trillion in 2018, according to Juniper Research reportfeaturing Modulr.

  • Funding follows the launch of major partnerships with Sage and Paxport in Q1 2019.

Modulr, the Payments as a Service API Platform for digital businesses, today announced that it has completed an investment of £14m.  The investment round has been led by new investors Frog Capital as well as further investment from existing investors including Blenheim Chalcot.

This scale-up capital takes the total amount raised to £24.5m and will enable Modulr to accelerate its vision of enabling partners and direct clients to quickly and easily integrate new payment services into their core products. The Modulr platform delivers a fully integrated service providing a fast, easy and reliable digital alternative to processing payments via traditional business and corporate banking. Modulr partnered with Sage this year to improve the payments offerings available to small and medium-sized enterprises (SMEs) and accountants, helping to bring much needed innovation and competition to the UK SME banking and payments market.

Modulr is already moving billions of pounds for businesses across alternative lending, employment services, accounting platforms, marketplaces, FinTech companies and the travel industry. The total value of payments in and out of Modulr’s platform exceeded £10 Billion this month, since the start of 2017. The capital will help increase the speed at which new payment types and functionality are added to the Modulr platform which will accelerate growth into existing industry verticals as well as supporting entry into new industry verticals.

The capital will support the continued growth of the teams located in London and Edinburgh, two of the UK & Europe’s leading FinTech hubs.  The recent establishment of an additional office in Dublin will be the focus for expansion into Europe.

Myles Stephenson, Chief Executive, Modulr, said: “We’re extremely pleased to have completed our latest funding round, led by Frog Capital, and to have found a likeminded investor to work closely with the leadership team and our existing lead investor, Blenheim Chalcot, to pursue the significant global opportunity for our business.  We’ve rapidly demonstrated the size of the market opportunity having processed more than £10bn of payments through the platform in our first two full years of operation.  The investment allows us to take the next step in pursuing our vision to become the world’s leading digital alternative for commercial & wholesale payments”.

Jens Düing, Senior Partner, Frog Capital, said: “Ever since the second Payment Services Directive (PSD2) we have monitored the markets across Europe for leading innovative scale-ups addressing this sizeable segment. Modulr stood out with the quality of its team, its product and the unrivalled traction the company has already managed to achieve.”

Rob Devey, Chair & Senior Non-Executive Director, Modulr, & Advisory Partner, Blenheim Chalcot, said: “We are delighted to have Frog onboard and we are greatly looking forward to working together to capture the massive opportunity that lies ahead.”

– END –

About Modulr
Modulr is the Payments as a Service API platform for digital businesses and can be integrated into any product or system.  Modulr’s new type of payment accounts are built for businesses that need a faster, easier and more reliable way to move money.  Once integrated, businesses can instantly set up as many accounts as they need.  Getting paid, reconciling and making payments is fully automated and can be managed in real-time, 24/7 through their existing software applications.  Modulr’s API makes it easy for businesses to streamline existing services, launch new products and scale more efficiently.  Modulr combines its API enabled platform with authorisation from the UK’s Financial Conduct Authority as an Authorised Electronic Money Institution to deliver a fully regulated service.

For further information – please go to www.modulrfinance.com.

About Frog
Frog is a specialist European software investor, investing in companies at the Scale-Up stage. They invest in businesses that have proven product-market fit, strong momentum and positive unit economics, typically with €3m+ revenues and 40% growth.

Frog work with the companies they invest in using their ‘Scale-Up Methodology’ to help continue their growth. With a team of VC/PE investors, operational experts and entrepreneurs, they provide the required advice and skill-set at the Scale-Up stage across a broad range of sectors. This reduces downside risk, while creating value and maximising the upside.

For further information – please go to www.frogcapital.com.

About Blenheim Chalcot
Blenheim Chalcot is the UK’s leading digital venture builder, investing more than just funds; they invest knowledge and experience, ideas and infrastructure.  They specialise in digital businesses that transform industries. Their approach is to identify high growth sectors, typically undergoing some market, technology or regulatory discontinuity, and look to build scalable platforms that satisfy real customer needs. Blenheim Chalcot aim to build profitable companies, with sustainable business models.

Working alongside entrepreneurs and co-founders, they support ventures from start-up to scale-up to exit, giving them access to the global networks and services they need to grow. This support is bolstered by the innovative partnerships they forge with big businesses. Blenheim Chalcot’s digital expertise helps their ventures be more agile, while their partners’ global scope helps them scale faster.

For further information – please go to www.blenheimchalcot.com.

Wagestream closes £40 million Series A led by Balderton and Northzone with revolving debt facility by Shawbrook

WAGESTREAM HITS £40M RAISE — THE UK’S LARGEST EVER SOCIAL IMPACT INVESTMENT

  • £40m milestone arrives after latest £15m cash injections from investors co-led by early-stage venture capital specialists, Balderton and Northzone
  • Rapid adoption of Wagestream platform by UK firms proves employers are willing to invest in financial wellness and tackle in-work poverty
  • Wagestream is a ‘get-paid-as-you-earn’ service that allows workers to access their earned income in real time
  • Firm seeks to end the payday poverty cycle, kill off the payday loans industry and encourage straight-from-salary savings
  • Over 120,000 UK employees at clients including David Lloyd, Rentokil PLC, Camden Town Brewery, Slug & Lettuce and Carluccio’s can now access wages in real time

London, Embargoed 20 May 2019 0001 — Flexible wage app, Wagestream, which campaigns against payday poverty and seeks to end the financial stress caused by the monthly pay cycle, has secured the largest social impact investment ever in the UK.

The firm’s latest round sealed this week — with early-stage venture capital specialists Balderton and Northzone co-investing together — adds £15m resulting in a total raise of £40m ($52.5m)

The funding total means that Wagestream — which allows staff to draw down a percentage of their earned wages any day of the month for a flat £1.75 fee — has attracted the largest pool of social impact investment in UK history.

With Wagestream, there are no loans involved and therefore no interest is charged.

Tech investor Balderton has raised £2.7bn over 19 years and has backed startups including Revolut and Nutmeg, while Trustpilot-backer Northzone has raised €1bn, targeting more than 130 companies since 1996.

This latest round comes on the back of earlier investments from QED, co-founding Investors in Wagestream, the Joseph Rowntree Foundation, the London Co-investment Fund (LCIF) and Village Global — a global VC backed by leading entrepreneurs including Bill Gates and Jeff Bezos — on top of a wholesale funding facility of up to £25m from specialist savings and lending bank, Shawbrook.

Venture capital and professional funders measure the investment worth of companies by looking at the full range of their capital resources.

Wagestream is on a mission to end in-work poverty, eradicate payday loans and destroy the ‘Poverty Premium’, whereby people on low incomes pay more for a range of essential products and services such as insurance, energy, and credit.

Wagestream is doing this by short-circuiting the monthly pay cycle — an antiquated monthly windfall that forces workers into the hands of payday lenders and other high-cost lenders when they approach the end of the month or face unexpected expenses.

Rapid adoption of the Wagestream platform by UK corporations proves employers are willing to invest in staff financial wellness and tackle in-work poverty.

Employers from across the private and public sphere including Rentokil Initial, Hackney Council and Roadchef have identified a number of CSR and HR advantages to the service.

For example, staff have greater financial security, which breeds loyalty, and employers trying to fill overtime shifts, particularly during unsociable hours, have noticed it becomes easier to do this once they use Wagestream.

This is because employers can elect to give workers access to that pay as soon as their shift is over — thereby re-establishing the link between work and reward. In fact, research shows that shift workers choose to work 22% more hours on average once enrolled in Wagestream.

The Joseph Rowntree Foundation’s investment came through the Fair By Design Fund, a movement committed to tackling the Poverty Premium by changing essential services so they don’t cost more to low income consumers. It is a  joint partnership with JRF, Big Society Capital, Barrow Cadbury Trust and Tech Trust.

Wagestream is also a supporter of Finance For Good — a collective of fintech services firms committed to improving the financial wellbeing of everyday people.

Peter Briffett, CEO and Co-Founder, Wagestream, commented:

“The feedback we are getting from private companies and public sector customers alike is that staff are happier, more productive and have greater financial security once they start using our service.

“The antiquated monthly pay cycle inflicts huge financial damage on household finances and its days are numbered. Too many people are pushed into a corner by in-work poverty and forced into the hands of payday lenders and high-cost credit.

“Wagestream is at the point of scaling up rapidly and this historic investment is going to accelerate the pace at which companies across the country liberate their staff from payday poverty and the disastrous social consequences that stem from it.”

Dr. Thomas Hellmann, Professor of Entrepreneurship and Innovation at Oxford University’s Saïd Business School, added:

“This fund raising is an example of the convergence of VC and impact investing, a Fintech venture attacking a pressing social problem with an innovative business approach. Fintech is constantly evolving and maturing, so it is exciting to see it deliver not only commercial, but also social, value.”

Nigel Morris, Co-Founder and Managing Partner of QED Investors, commented:

“We are extremely proud of our investment in Wagestream. As its co-founding investor, we’ve worked closely with management since its inception, helping Wagestream grow from a seed-stage start-up into the dominant player in the space.

“Employers and employees love this business, and so do we. It’s a unique combination of high customer satisfaction, strong leadership, rapid growth and social good. Very few companies check all those boxes. We’re thrilled to be associated with Wagestream.”

Rob Moffat, Partner, Balderton Capital, added:

“We fell in love with the strong product-market fit of Wagestream. We very rarely hear such universal positive feedback from all who have tried a product. Companies used to take an active role in supporting the financial health of their users but this has slowly been eroded, to the extent where employees paid at the end of the month are effectively subsidising their employer for 29 days a month. Wagestream starts to restore the right balance.”

Jeppe Zink, Partner, Northzone added:

“Fintech is delivering where the financial services industry has failed, by putting consumers’ financial wellness at the core of the industry. This is not just a new business model, it’s a fundamentally new way of doing business. We think Wagestream can be the leading light for a consumer-led era of finance, and we are excited to partner with them on the journey.”

If you’re interested in joining Wagestream then email us at pressoffice@wagestream.co.uk

— ENDS —

Notes to Editors

For more information, please contact:

Neil Millard, Rhizome Media: neil@rhizomemedia.co  |  07803 560 331

Martin Greenland, Rhizome Media: martin@rhizomemedia.co  |  07582 770055

About Wagestream

Wagestream’s goal is to end the payday poverty cycle, which sees a significant percentage of Brits taking out ultra-high interest loans to bridge their way to payday.

Wagestream is also a supporter of Finance For Good — a collective of fintech services firms committed to improving the financial wellbeing of everyday people.

Wagestream does this by enabling employees to receive a percentage of their accrued earnings anytime during the month, sparing them from using loans and payday lenders.  They can draw down earned funds using a mobile app for a flat fee of £1.75. Wagestream Ltd is registered with the Financial Conduct Authority as an EMD Agent (reference 902046) of PayrNet Limited, an Electronic Money Institution authorised by the Financial Conduct Authority (reference number: 900594).

The ID Co. secures £1.57 million Seed investment from Amadeus Capital Partners and SixThirty

Global fintech, The ID Co., has today announced it has received $2m seed funding from global technology investor Amadeus Capital Partners, SixThirty and other investors.

The ID Co. helps businesses such as lenders to onboard their customers more efficiently. Its technology removes the friction caused during application processes by the current challenges of risk, fraud, compliance, and regulation.

The ID Co. has recently launched two innovative products, DirectID Insights and Income Verification, based on Open Banking. The ID Co. is a market leader in Open Banking – a global movement that grew out of the UK, which allows companies or individuals to securely share their data with a third party. The ID Co.’s mission is to make bank data readily available to any business so that it can revolutionise its offering and transform its customers’ experience.

IDCO Offices

DirectID Insights is the first online decisioning tool for use by underwriters, fraud analysts and Credit Risk Officers that requires absolutely no integration. Leveraging Open Banking data, it drastically reduces operational costs for businesses and unlocks, from bank data, the information required for lenders to grant, or deny loan applications. DirectID Insights user numbers have grown rapidly in the UK and USA and include Clydesdale & Yorkshire Bank, Prosper, Marlette and LendingMate.

The ID Co.’s Income Verification solution utilises six unique algorithms to give a sound basis for assessing a loan application. The tool also gives additional insights such as showing supplemental income and whether the applicant’s income changes over time.

The new investment from Amadeus Capital Partners and other investors will enable The ID Co. to extend its offering to new sectors and international customers while continuing to grow in its existing markets.

James Varga, CEO of The ID Co., said:

“The financial world is being fundamentally changed through Open Banking. It improves our understanding of each individual, allowing us to move away from traditional credit reference agencies.

“This funding gives us the support we need to execute our plan to bring bank data to the global market. We are hiring fast and entering new markets and geographies across the globe. The recent launch of DirectID Insights and Income Verification means that we are in an excellent place to capitalise on the need for greater efficiency in lending practices to reflect borrowers’ expectations.”

CJW_1491

Nick Kingsbury, Partner at Amadeus Capital Partners, added:

“The ID Co. is delivering real value to its clients. The application of Open Banking-based data allows financial providers to personalise their services and streamline and shorten lending processes. We are delighted to be supporting the company in solidifying its lead in the UK and expanding its international presence.”

“SixThirty is excited to continue its support for The ID Co., a growing leader in the digital reality of Open Banking,” added Atul Kamra, Managing Partner of SixThirty.

“The speed at which decisions must be made in our hyper-connected world comes with a growing customer expectation for instant value and service. This places a premium on The ID Co.’s capabilities around rapidly confirming customer identity and delivering customer insights. James and The ID Co. team have gotten a real nice head start here, and are well positioned to take advantage from the regulatory tail winds afforded by Open Banking.”

Greensill get funded by SoftBank to the tune of £628.56 million

13th May, 2019


London, United Kingdom– May 13, 2019– Greensill, the leading non-bank provider of working capital finance for companies globally, today announced an $800 million investment by the SoftBank Vision Fund.

The transaction underscores the value of working capital finance as the most advanced means of providing low cost capital to companies large and small, while opening up a new asset class to global investors.

Lex Greensill, Founder and Chief Executive Officer of Greensill, said: “The SoftBank Vision Fund’s investment is a resounding endorsement of the work we do at Greensill unlocking capital so our clients can put it to work. We are proud to welcome Masayoshi Son and the Vision Fund team into the Greensill family, and we are excited about the opportunity of working with the company, its many partners and beyond.”

The worldwide market for working capital finance is valued at $55 trillion, according to the latest research by Greensill, while only a small fraction of that opportunity has been accessed. Traditional banks typically offer working capital finance to a limited number of large clients. Greensill’s differentiated technology-driven approach opens the market to all companies no matter their size, scope or location based on a sophisticated, data-driven model.

“Greensill democratises access to capital using technology and the financial markets,” Lex Greensill added. “We are agents of technological disruption with a mission to make available finance at the lowest possible cost for our clients and their suppliers, whilst opening up a whole new asset class to global investors.”

Greensill is one of the largest non-bank bond issuers in Europe, working with more than 100 global institutional investors, unlocking capital to provide more than $60 billion of financing to more than 8 million customers across 60 countries.

The Vision Fund’s investment will accelerate Greensill’s development of new technology to further improve access to capital for companies globally and meaningfully enhance the firm’s ability to support the development of a broad, liquid capital market for working capital finance assets.

With the Vision Fund, Greensill will build on its partnership with General Atlantic to continue developing its already extensive global network, further grow its established origination and distribution strategy, and explore new and deeper opportunities for collaboration.

Greensill will also accelerate its recent entry into Brazil and plans to enter multiple global markets including China and India. Since 2015, Greensill has delivered annual growth of more than 100%.

Colin Fan, managing partner of SoftBank Investment Advisers said: “Greensill is a strong market leader in working capital finance and has played a pioneering role in the technological revolution that has transformed the industry.Through this new partnership, we see immense opportunity to introduce working capital finance to a new generation of businesses around the world.”

Morgan Stanley were financial advisors and Allen & Overy were legal advisors to Greensill on the transaction.

Source: https://www.greensill.com/news/greensill-announces-800-million-investment-by-the-softbank-vision-fund/

Flagstone raises £11m Series A investment from Kindred Capital and others

9th May 2019.

London based FinTech, Flagstone, developer of the UK’s largest cash deposit platform which provides clients with access to over 550 deposit accounts from 30 banks through a single application, has raised £11m in growth capital from investors including Kindred Capital, Moneysupermarket Group plc, VentureFounders and a number of private individual investors.

Flagstone was founded in 2013 and has grown rapidly to become the leader in the UK cash deposit platform market having transmitted more than £3bn in deposits since 2015. The business provides individuals, their wealth managers, SME corporates and charities with access to more than 550 deposit accounts, many with market leading or exclusive interest rates, from 30 banks including high street names such as HSBC and Santander as well as a host of challenger banks, enabling clients to increase their interest income and manage their risk through diversification and greater use of FSCS protection.

Flagstone is already the exclusive cash deposit platform for clients of St. James’s Place, Quilter Cheviot, Tilney Group and many other leading wealth management firms.

Simon Merchant, Co‐Founder and Co‐Managing Partner of Flagstone, said: “With £11m of growth capital we are now well‐positioned to expand our business and provide more clients with a simple way to maximise the interest income on their cash and at the same time become an increasingly valuable funding partner to our banks.”

NOTES TO EDITORS
About Flagstone:
Flagstone is an FCA authorised and regulated fintech company (FCA reference numbers 676754 and 605504) located in London and founded in 2013. Flagstone’s online cash deposit platform enables companies, charities and individuals to earn more interest and reduce risk through diversification.

Completion of a single application gives the client access to over 550 deposit accounts from 30 banks and enables them to research and open multiple accounts in a matter of key strokes. The platform puts clients in control of their cash, giving them access to market‐leading and exclusive rates from a growing panel of UK banks, consolidated reporting and regular new rate alerts to ensure that their cash is working as hard as possible for them 24/7. For more information, see www.flagstoneim.com or watch a short video explaining what we do and how it benefits clients by clicking here.

About Kindred Capital:
Kindred Capital is a seed and early stage venture capital investor, focusing on European technology companies. Based in London, Kindred invests in entrepreneurs building globally ambitious businesses. Kindred’s portfolio includes Kalo, Paddle, Five.ai, LabGenius and Verve. Kindred’s unique Equitable Venture model, of sharing carry with the founders they invest in, has led to over 60 founders co‐owning carry in the fund. For more information, please visit www.kindredcapital.vc.

About Moneysupermarket Group:
Moneysupermarket Group is an established member of the FTSE 250 index. Our brands ‐ MoneySuperMarket, MoneySavingExpert, TravelSupermarket and Decision Technologies ‐ together have 13 million active users for whom we provide proactive and personalised services to help them manage, save and grow their money.

In 2018, we helped millions of families save an estimated £2.1bn on their household bills including insurance, energy, credit cards and loans, travel and TV and broadband.

Moneysupermarket.com Financial Group Limited is authorised and regulated by the Financial Conduct Authority (FCA FRN 303190) for the insurance, mortgage and consumer credit products it offers. For energy products, MoneySuperMarket is accredited under the Ofgem Confidence Code.

About VentureFounders:
VentureFounders is one of the UK’s leading investors in high growth B2B and B2B2C technology companies with over 90 investment rounds completed in the last four years. It was founded by James Codling in 2013, following his 18‐year career in Private Equity and launched in 2014. VentureFounders’ USP is that it gives High Net Worth and Sophisticated investors direct access to venture investment opportunities, on the same terms as the lead investors. Its experienced senior executive and investment team has been responsible for backing 34 high growth technology companies including Park box, Zopa, Hopster, DueDil, Farewill, BioSure, RotaGeek, Brightpearl and Hypaship. The business has dedicated origination efforts and sourcing partnerships with leading venture capital funds, family offices and angel investors. For more information, see www.venturefounders.co.uk.

For more information please contact:
Simon Merchant – Managing Partner, Flagstone
Email: simon.merchant@flagstoneim.com

TransferGo lands £2.63 million Series B investment led by Seventure Partners

LEADING EUROPEAN VENTURE CAPITAL FIRM SEVENTURE PARTNERS INVESTS IN THE REMITTANCE COMPANY TRANSFERGO, AS THEY REACH 1,000,000 CUSTOMER MILESTONE

TransferGo hits landmark milestone following successful Series B funding round and an additional $3.4 million investment from Seventure Partners

LONDON, UK (May 07, 2019) – TransferGo, one of the world’s fastest growing money transfer companies, today announced that its global customer base has surpassed one million and continues to grow by more than 2,000 new users each day. This landmark follows a $3.4 million investment from Seventure Partners, one of the European leaders in venture capital.

Based in London, UK, TransferGo is the quickest, most reliable remittance company in Europe and with a Trustpilot score of 9.6 and an NPS score of 75, it has built a much-loved brand based on transparency, trust and user experience. Last year the company announced a fee-free offer – the first completely free international money transfer service.

Since launching in 2012 it has seen 100 per cent year on year growth and is now accessible in 47 countries. In December 2018 the company closed a Series B funding round for $17.5 million.

“TransferGo represents a new breed of FinTech companies that are really shaking up the remittance market. Its impressive growth and progress that really caught our attention, along with its customer-centric approach and commitment to continued innovation, make it the perfect fit for our investment strategy in the FinTech field,” said Ludovic Denis, Venture partner in the Digital technologies team at Seventure Partners. “We’re looking forward to working with the team and supporting their exciting development going forward.”

Commenting on the company’s landmark achievement, CEO and cofounder Daumantas Dvilinskas said: “We’re delighted that one million people around the world are now using TransferGo to send money to friends and family internationally. Our customers are at the heart of everything we do so reaching this milestone is a huge testament to the work we’ve put into creating new solutions that work for our users, as well as a service that exceeds customer experience expectations.”

Dvilinskas continued, “We’ve had an exceptional year so far that’s seen us hit $1bn in money flow as well as each one million customers- and we’re far from done. Currently, only twelve per cent of global remittances are digital and this space is expected to grow 11% CAGR over the next 5 years, which could be north of $400bn by 2023. We’re really committed to making the most of this opportunity and ensuring digital remittances are accessible to as many people as possible – and we’re delighted that Seventure Partners supports this vision.”

About TransferGo
Founded in 2012, TransferGo is the fastest, most reliable, remittance company in Europe and is the only Pan-European money transfer company that can guarantee your money will reach its destination in 30 minutes. We put the customer first and deliver transparency, and by prioritising customer experience, we’ve built a brand that thousands of clients trust and a product they love (rated Excellent on Trustpilot, with 96% 5* reviews NPS of 83) our vision is to make international financial services pain-free and without artificial borders.

Founder and CEODaumantas Dvilinskas was included in the 2017 Forbes 30 under 30 and the company was recently nominated for “Fastest Rising Startup of the Year” at TechCrunch Europa Awards 2018.

About Seventure Partners
With €750m net commitments under management as of the end of 2018, Seventure Partners is a leading venture capital firm in Europe. Since 1997, Seventure Partners has been investing in innovative businesses with high growth potential in two fields: Life sciences across Europe, Israel, Asia and North America, and Digital technologies in France and Northern Europe. In Digital technologies, the three main areas of focus include FinTech/Insurtech, Retailtech, and Other digital innovative solutions.

Investments can range between €500 000 and €10m per round, or up to €20m per company, from early to late stage. Seventure Partners is a subsidiary of Natixis Investment Managers, which ranks among the world’s largest asset management companies. Listed on the Paris Stock Exchange, Natixis is the corporate finance, management and financial services bank of BPCE, the second largest banking group in France.

For more details: www.seventure.com / Twitter @SeventureP

Source: http://www.seventure.fr/wp-content/uploads/2019/05/TransferGo-1-million-customers-DRAFT-3-SP-final.pdf

Checkout.com raises £ 175.33 million Series A investment led by Insight Partners and DST Global

Checkout.com, the global payment solutions provider, announces today that it is taking funding from outside investors for the first time in its history, having raised $230m in what is Europe’s largest fintech Series A round ever, and globally the third largest fintech Series A round of all time.

  • Largest-ever fintech Series A raise in Europe led by Insight Partners and DST Global*
  • Third largest fintech Series A round globally ever
  • Online international payments business counts Samsung, Easygroup, Getty Images, Deliveroo, Transferwise, Patreon and Virgin Active amongst its customers
  • Insight Partners’ Deven Parekh to join the board

Checkout.com, the global payment solutions provider, announces today that it is taking funding from outside investors for the first time in its history, having raised $230m in what is Europe’s largest fintech Series A round ever,and globally the third largest fintech Series A round of all time. 

The record round, led by growth investors Insight Partners and DST Global, underlines the ambition of the seven year old UK business, which istransforming the world of digital commerce by providing merchants with a solution that enables payments across all geographies and channels. Singapore’s sovereign wealth fund GIC, Blossom Capital, Endeavor Catalyst and other strategic investors are also participating in the round. Checkout.com will use the funding to continue its rapid growth in Europe, the US and the Middle East, with further expansion into Asia and Latin America. 

The London-headquartered company, whose solutions already power many of the UK and EU’s leading fintechs, offers the world’s most comprehensive cross-border payment solution for digital commerce. Checkout.com’s proprietary technology helps fast growing businesses have seamless and reliable global payment processing for both companies and consumers. The business offers direct access to domestic acquiring across payment methods and geographies, including all major credit and debit cards, online banking, PayPal, Apple Pay and other eWallets. This is achieved through a single, unified integrated platform which also provides fraud management tools, analytics and comprehensive reporting features.

Founder Guillaume Pousaz said: “We have been fortunate to have some of the world’s leading investors approach us for some time but our focus has remained on building the very best suite of products we can for our merchants on four continents. Having built a sustainable business, one hire at a time, it was crucial to find partners that share our vision of how enterprise businesses will consume financial services in the future. We have anticipated this from our early days and have designed Checkout.com’s platform from the outset so that we can easily deliver incremental services to our customers as the company expands its offering.”

“Bringing world-class investors on board for our first funding round is a validation of everything the Checkout.com team has worked hard to achieve over the years and a way to flag just how serious we are about building a global leader that can serve any business, in any geography. The capital will help us increase the speed at which we roll out new products to address our merchants increasingly complex needs. Performance in payments and data streams are key drivers of success for merchants. Our objective remains to help our customers to grow their businesses, by providing them with the solutions and insights they need to win market share.”

Checkout.com enterprise customers include some of the world’s best known brands, such as  Samsung, Easygroup, Getty Images, Deliveroo, Transferwise, Patreon and Virgin Active. It processes more than 150 currencies and has 345 staff, with nearly 200 based in London and the rest in the company’s eight offices. Its team is expected to triple over the next three years as the company expands its core business and moves into new product areas.

Following the fundraising, Deven Parekh, Managing Partner at Insight Partners will take a seat on the board. 

Deven Parekh said: “We’ve been following Checkout.com for some time and we have been impressed by their dedication to building the right product for their merchant customers, as well as their commitment to creating a profitable business. The payments world is changing rapidly and online payments will be the source of most financial services in future. We are confident that Checkout.com will attract a great proportion of those transactions because its product and unified platform provide the full range of services that growing enterprises require. Insight Partners is excited to welcome the Checkout.com team to our portfolio, and look forward to driving continued growth together.”

Tom Stafford, Managing Partner, DST Global, said: “Payments are a critical component of any online business. With the digital payments market expected to grow to $6 trillion by 2021, we believe Checkout.com can expand rapidly through its technology-driven and customer-centric payments solution. We are delighted to partner with Guillaume and the team.”

Checkout.com has been advised in this transaction by FT Partners and law firm Wilson Sonsini Goodrich & Rosati. 

*According to Dealroom data on Series A fundraises, Immunocore ($320m) was the largest Series A fundraise for a UK company in 2015, followed by OakNorth ($200m) in Oct 2017. Outside biotech, the biggest Series A round in Europe was TradePlus24 (Switzerland) in Jan 2019 ($120 m).

–   Ends – 
  

Contact:
antonella@burlington.cc – +447530 815018
angela@burlington.cc – +447799 622438 

MWWPR for Insight Partners – insightpartners@mww.com
+1-646-376-7037

 
About Checkout.com
Checkout.com helps companies accept more payments around the world through one integration.  The tech company works with global businesses to optimize their payments, with real-time data.  Checkout.com’s unified global payment processing platform features in-country acquiring, relevant payment methods, feature parity across geographies, fraud filters and reporting features, via one API. It helps businesses in Europe, the US and the Middle East to achieve faster, more reliable processing in more than 150 currencies, with direct access to Visa, Mastercard, American Express, all major international cards, as well as popular alternative and local payment methods. For more see: www.checkout.com

About Insight Partners
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software companies that are driving transformative change in their industries. Founded in 1995, Insight currently has over $20 billion of assets under management and has cumulatively invested in more than 300 companies worldwide. Our mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on growth expertise to foster long-term success. Across our people and our portfolio, we encourage a culture around a core belief: growth equals opportunity. For more information on Insight and all its investments, visit www.insightpartners.com or follow us on Twitter @insightpartners.

About DST Global
DST Global is one of the leading Internet investment groups globally. Its portfolio includes some of the world’s leading and most valuable Internet companies like Facebook, Twitter, Airbnb, Spotify, WhatsApp, Alibaba and JD. DST Global is headquartered in Hong Kong and has offices in Silicon Valley, New York, London and Beijing. 

Source: https://www.checkout.com/company/blog/post/checkout-com-raises-usd230m-in-record-european-series-a

Credit Kudos raises £2.2 million Series A investment led by Ascension Ventures

Credit Kudos, challenger credit bureau and leader in commercial applications of Open Banking, announced today they have raised £2.2m in their latest round of funding. Funding is led by Ascension Ventures, through its social impact fund Fair by Design, with additional investment from existing investors NFT Ventures and Entrepreneur First’s Next Stage Fund. New backers include Dragons’ Den star Sarah Willingham; prolific angel investor Charlie Songhurst (investor in Affirm, ClassPass, and Coindesk); and key figures from the credit industry, including both the former CEO and MD of Callcredit, now TransUnion, John McAndrew and Graham Lund. The investment will be used to drive further growth within the UK and support expansion into Europe, alongside further investment into Credit Kudos’ platform.

Credit Kudos, which launched its Open Banking platform in January 2018, was co-founded by software engineers Freddy Kelly and Matt Schofield. Upon returning to the UK after working in Silicon Valley, Freddy faced a myriad of challenges accessing credit due to his ‘thin’ credit file. With little to no recent financial activity in the UK, Freddy was offered only limited credit product options, with higher interest rates and restrictions. This experience led Freddy to co-found Credit Kudos to help all people access affordable credit.

In the UK alone, it is estimated that 1 in 4 UK families have less than £100 in savings, demonstrating a pervasive need for access to affordable credit. However, due to insufficient data, many individuals with the most need for credit are at risk of being pushed into high-cost credit options, and have the hardest time accessing affordable loans. It was also revealed that financially excluded individuals pay on average a “poverty premium” of £490 per annum.

Credit Kudos’ mission is to advance financial inclusion through new applications of technology. Credit Kudos provides lenders, brokers and financial institutions with a highly accurate and transparent scoring system based on consumer consented data, providing a fairer representation of an individual’s creditworthiness. Credit Kudos’ solution enables lenders to make better decisions, whilst simultaneously helping previously overlooked individuals access credit.

Investment in this round by Ascension Ventures’ social impact fund Fair by Design (FBD), is a testament to Credit Kudos’ work towards the advancement of financial inclusion and reducing the poverty premium, to enable previously overlooked individuals access to mainstream credit through alternative measures of creditworthiness. “Credit Kudos is very much at the centre of the FBD investment thesis,”said Emma Steele, Investment Manager for Ascension Ventures “They are a core solution to tackling the lack of fair and affordable access to credit for customers, with thin files or no credit history. We very much back Freddy’s ambition to change the way the risk profile of a potential borrower is assessed. By doing that, Credit Kudos has the potential to 1) advance financial inclusion by improving approval rates for people previously excluded by the system 2) help prevent borrowers from being forced into higher priced products and 3) make it easy for lenders to check affordability. We are excited to back the team on this journey.”

Also providing further investment is the world’s leading talent investor, Entrepreneur First. Entrepreneur First have been a part of the Credit Kudos story since inception. Matt Clifford, Entrepreneur First CEO said, “Credit Kudos is tackling a highly complex and challenging problem, taking a new approach that leverages machine learning to power smarter decisions. We are thrilled to be doubling down on our commitment to the team and their vision.”

This funding round has brought a number of new backers including BBC Dragons’ Den star Sarah Willingham, “I’m thrilled to be backing the Credit Kudos team and their mission to make credit scoring fairer and easier for both businesses and consumers. Sadly the traditional methods are still opaque and confusing and all too often consumers are penalised despite being very creditworthy. Applying new data and technology to the problem gives Credit Kudos the ability to make smarter decisions, empowering consumers and giving them greater choice. I look forward to seeing Credit Kudos make a lot of lives easier.”

Securing further investment from both original investors and further industry leaders is evidence of Credit Kudos’ success and growth since Open Banking became a reality in early 2018. “This investment allows us to scale up our business to meet the demands of a post-Open Banking and PSD2 world,” said Freddy Kelly, Credit Kudos CEO. “This funding will be used to expand our engineering and development team to continue to deliver first to market technology across our platform, as well as supporting expansion into wider Europe.”

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About Credit Kudos:

Credit Kudos is an FCA-authorised credit bureau and an Open Banking Account Information Service Provider (AISP) that uses financial behaviour to measure creditworthiness. Through direct connections to the UK’s largest banks, Credit Kudos aggregates and interprets transaction data for use by lenders, brokers, and financial institutions. Credit Kudos goes beyond traditional scoring, providing a comprehensive view of a borrower’s creditworthiness. Its platform transforms complex sets of information in easy-to-use, digital-first tools to help everyone make better lending decisions.

LendInvest secures up to £200 million in funding from HSBC UK to back entry into home loan mortgages

London, 8 April 2019 – LendInvest, the marketplace for mortgages, has secured funding of up to £200 million from HSBC UK, one of the world’s largest banking and financial services organisations, bringing further institutional capital to its platform.

This new funding will enable LendInvest to enter the regulated home loan market for the first time, marking the company’s next step towards achieving its ambition of becoming a whole-of-market mortgage provider. Launching in 2019, LendInvest’s first home loan product will be available to homeowners that require short-term bridging finance for terms up to 12 months.

The £200 billion mainstream UK mortgage market is ripe for disruption. LendInvest’s unique marketplace model and proprietary technology supported by high quality institutional funding provide borrowers with attractive products, a much faster process and excellent service – and investors with the opportunity to access an attractive, secured asset class.

LendInvest has lent over £2 billion to borrowers to date, having quickly taken market share in the short-term finance market and rapidly built scale in the buy-to-let market.

LendInvest manages a substantial and diverse capital base. In addition to HSBC UK, LendInvest’s bank funding partners include global banks Citigroup and Nomura, European banks and a number of UK-listed challenger banks. Alongside multiple institutional funding lines, LendInvest enables corporate investors and sophisticated or HNW individuals to invest in the mortgages it writes via its Co-Investment Platform, discretionary fund and £500m LSE-listed bond programme.

Christian Faes, Co-Founder, and CEO of LendInvest commented: “LendInvest continues to attract investment onto our platform from some of the world’s largest and most sophisticated investors. This new funding from HSBC is a further important step forward in the evolution of our business. We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market. Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200 billion mainstream UK mortgage market.”

David Langford, Relationship Director in HSBC’s Non-Bank Financial Institutions Team in London added: “We are delighted to partner with LendInvest and the platform’s experienced team on this funding. The deal demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply. We look forward to the launch of this exciting mortgage product and seeing how it will benefit new and existing LendInvest customers.”

About LendInvest

LendInvest is a new type of financial services business: the marketplace for mortgages. LendInvest’s unique platform and proprietary technology solve complexity for borrowers and provide investors with stable income secured against property.

Since launching in 2008, LendInvest has lent over £2 billion and built a significant and diverse capital base comprising individuals, corporates and some of the world’s largest financial institutions.

Media contacts

Leigh RimmerPublic Relations Manager

Tulchan CommunicationsTom Murray / Jonathan Sibun

Acre Platforms secures £5 million investment from Aviva and Sesame Bankhall Group

02 April 2019 → Sesame Bankhall Group (SBG) and Aviva today announce a £5 million investment in new technology start-up firm Acre Software.

Sesame Bankhall Group (SBG) and Aviva today announce a £5 million investment in new technology start-up firm Acre Software – the next-generation mortgage, protection and general insurance platform. The exclusive arrangement between SBG and Acre will help to transform the way mortgage and protection advisers process business and service their clients.

Acre was born out of Founders Factory, which is an organisation that offers an incubator for start-up companies and assists with product development, market insight and capital. Aviva Ventures is an investor in Founders Factory and worked with SBG to help facilitate Aviva’s investment in Acre.

Despite the rise in direct-to-consumer strategies, led mainly by lenders and new challengers, nearly three quarters of UK mortgages are facilitated by advisers 1. However, in order to retain their position, advisers need to match the speed and end-user experience of these market disruptors, but are slowed by fragmented workflows and compliance headaches.

Acre’s goal is to radically improve the whole experience around the mortgage and insurance application process for advisers and their clients. Acre uses blockchain to bring together all the components of the mortgage advice process into one unchangeable ‘record of the transaction’, putting brokers back in control of their business and offering a seamless, faster journey for consumers. With the volume of transactions provided by Sesame Bankhall Group, Acre aims to become one of the largest users of blockchain in the UK.

Commenting on today’s announcement, John Cowan, Executive Chairman, Sesame Bankhall Group said: 
“After undertaking a comprehensive 12-month review of the market, we concluded that we could no longer ignore the new competitive threats circling around our profession and we had to act. Working with Aviva Ventures, we saw an opportunity to turn the threat posed by new disruptive technology on its head. Acre will bring the latest technology know-how, and that coupled with our distribution expertise will help advisers and their clients reap the benefits.”

Justus Brown, CEO/founder of Acre Software and former Founders Factory Chief Product Officer, said: 
“Buying a house is one of the biggest financial transactions a person can make, yet the process is slow, opaque and fragmented, which is increasingly out of step with consumer expectations. We’re changing this – levelling the playing field for brokers using innovative tech, while putting an informed consumer at the centre of the mortgage process. We are thrilled to have SBG’s distribution muscle and industry expertise, along with Aviva and SBG’s financial support at our disposal on this journey.”

Commenting, Martin Schultheiss, Group Managing Director, Sesame Bankhall Group added: 
“SBG serves over 10,000 financial advisers across the UK and facilitated £42 billion in mortgage completions last year. These advisers are looking to us to help build the next generation of adviser services to ensure they stay competitive. The SBG and Acre relationship helps to enable this future vision for us.”

Commenting on Aviva’s investment in Acre, Ben Luckett, Managing Director, Aviva Ventures, said: 
“Acre is a fantastic example of the kind of fintech business we want to help nurture. They have identified a market which could be improved through technology and they’ve gone for it by securing a very large distribution partner, which is often the missing ingredient for success. I’ve really enjoyed watching the company develop, and the investment we’re announcing today will allow them to build their team further and realise their full potential.”