Modulr completes scale-up investment round of £14m
Payments-as-a-Service API fintech, Modulr, has gained a new investment round of £14 million, reports Martin Whybrow.
This stems from new investor, Frog Capital, and existing investors including Blenheim Chalcot. This takes the total amount raised by Modulr to £24 million.
Modulr touts its new type of payment accounts as giving businesses a faster, easier and more reliable way to move money. Once integrated, businesses can set up as many accounts as they need. Getting paid, reconciling and making payments is automated and can be managed in real-time through their existing software applications (Modulr partnered with Sage earlier this year to provide its payments offerings for SMEs and accountants).
Modulr is authorised by the UK’s Financial Conduct Authority as an Authorised Electronic Money Institution to deliver a fully regulated service. Modulr claims the total value of payments into and out of its platform since the start of 2017 is more than £10 billion. This is across alternative lending, employment services, accounting platforms, marketplaces, fintech companies and the travel industry.
The latest capital is intended to help increase the speed at which new payment types and functionality are added to the Modulr platform, allowing accelerated growth in existing industry verticals and entry into new ones.
The company intends to increase its teams in London and Edinburgh, as well as in its newly opened Dublin office. The latter is the focus for expansion into the rest of Europe.
Myles Stephenson, Modulr’s CEO, says: “The investment allows us to take the next step in pursuing our vision to become the world’s leading digital alternative for commercial and wholesale payments”.
Jens Düing, senior partner at Frog Capital, says: “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.” Frog is a specialist European software investor, investing in companies at the “scale-up” stage, typically with €3+ million revenues and 40% growth.