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As the BaaS market heats up, London-based Railsbank secures £28M to fund US expansion plans

In the future, the digital platforms will likely become the ideal business model for banks and other financial institutions. Right now, Banking as a Service platform (BaaS) is becoming a widely accepted revenue model for many forward-thinking institutions. London-based Railsbank is one of them. 

Raised £28M funding

Recently, Railsbank raised $37 million (approx £28 million) as part of continued equity funding to support its global growth and product expansion. 

Nigel Verdon, co-founder, and CEO of Railsbank said: “We are thrilled to have the support of world-class investors who bring a highly strategic network to help us continue with the vision, with zero pivots, that Clive, my co-founder, and I started within 2016.

The round was co-led by existing investors –  MiddleGame Ventures and Ventura Capital. Other investors including Anthos Capital, Global Brain, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan, and Firestartr also participated.

Mo El Husseiny, Ventura Capital, said: “Ventura Capital is delighted to be the largest investor in this investment round, a commitment made on the strength of Railsbank’s clear technology leadership in the space, and Nigel and the executive team’s deep experience of the traditional global financial system. We expect Railsbank to be the category winner in Banking as a Service due to its beautifully scalable global business model and the winning client interviews we have initiated. We are absolutely excited to embark on the next phase of Railsbank’s growth and will remain a supportive shareholder for future capitalisation opportunities.”

Michael Meyer, the co-managing Partner of MiddleGame Ventures, said: “We are proud to be supporting the best team in Open Finance. Nigel, Clive, and the team are building a unique high-growth company that embodies the essence of what my partner Pascal Bouvier first identified in 2016 with his blog post on “Banking as a Service/Platform”. We connected with Nigel then as a two-person start-up with explosive potential, hosted Nigel and Clive in our accelerator, and have supported Railsbank from the beginning. We look forward to exponential growth, particularly with our advice on US and European strategies.”

How will the funding be used?

The company will use the investment to expand its global footprint in the US, further strengthen its core product proposition, and launch Credit Cards as a Service. 

Provides wholesale banking services

Founded by Clive Mitchell, and Nigel Verdon, the platform provides fintech companies with a range of wholesale banking services, including IBANs, receiving money, sending money, converting money, direct debit, issuing cards, and managing credit through APIs.

Recently, the BaaS platform signed a partnership with Visa and acquired Wirecard company in the UK. Railsbank has also recently announced it will offer its complete platform, including BaaS, Cards as a Service, Compliance as a Service, and the first-of-its-kind Credit as a Service to fintechs, enterprise companies, and consumer brands in the USA. 

Headquartered in London, Railsbank has offices in Santa Monica, Singapore, Vilnius, Munich, Newcastle, the Philippines, Malaysia, Vietnam, and Sri Lanka.

Emily White, President of Anthos Capital who also sits on the board of Lululemon and is a former Snapchat COO and Instagram COO, said: “Railsbank is revolutionising access to financial products by enabling non-bank companies to deliver innovative solutions to their customers. We’re thrilled to partner with an exceptional team and support their global expansion.”

The post As the BaaS market heats up, London-based Railsbank secures £28M to fund US expansion plans appeared first on UKTN (UK Tech News).

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