Payments as a Service API platform, Modulr, has been bolstered by a £14 million investment.
The funding round was led by new investors Frog Capital, and there was further investment from existing investors including Blenheim Chalcot.
This scale-up capital takes the total amount raised by the firm to £24.5 million and will allow Modulr to accelerate its vision of enabling partners and direct clients to integrate new payment services into their core products.
Modulr’s platform is said to deliver a fully integrated service providing a 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.
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 be used to increase the speed at which new payment types and functionality are added to the Modulr platform. The company hopes this will accelerate its growth into existing industry verticals, as well as support entry into new industry verticals.
The capital will also support the continued growth of the teams located in Edinburgh and London, two of 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 like-minded 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.”