Rishi Khosla , CEO & Co-Founder of OakNorth

OakNorth Holdings, the UK Challenger Bank, has recently raised an amount of $440 million from Japan’s  SoftBank Vision Fund and the Clermont Group.

This financing will be used to launch its lending operations in the US. This will provide the North American lenders with the capability to greatly expand and accelerate business lending opportunities while creating efficiencies and improving credit quality. It will also be used for building the scale and quality of the company’s SME loan books and to continue driving the growth of the OakNorth Analytical Intelligence (ON AI) platform that is already being used by banks across the US, Europe and Asia with combined assets of over $800 billion.

Richard F. Chandler, Chairman of Clermont Group, said: “The Clermont Group is delighted to continue its support of OakNorth which is proving to be an emerging champion in the financial services sector. It is building a strong and resilient business with an innovative business model.”

Commenting on the investment, Rishi Khosla, co-founder of OakNorth Holdings, said: “We are excited to have another strong investor on board. With this finance from SoftBank and follow-on investment from Clermont, we will be able to continue scaling the group’s operations globally. We have a relentless focus on helping small and medium sizes businesses across the world that are in growth mode access better financing to fund their development. These businesses are the backbone of economies and communities, as evidenced by the thousands of new homes and jobs created from the loans we’ve done so far.”

SoftBank Investment Advisers’ support will also help OakNorth open doors to market-leading institutions, with the goal of enabling the company to deploy the OakNorth Analytical Intelligence platform to more banks and lenders around the world. The technology is currently being used by institutions in Asia, North America and Europe – including NIBC Bank in the Netherlands which participated in the $100 million fundraising the group closed in September 2018.

“OakNorth is delivering a highly differentiated service to a key segment of the market that has historically been underserved by commercial banks”, said Munish Varma, Partner at SoftBank Investment Advisers. “The company has a clear and ambitious vision to scale globally and we are excited to work with them to achieve this goal.”

Established in 2015, OakNorth is a UK bank for small and medium-sized companies that provides business and property loans. It helps its lending customers in originating, credit analyzing of loans and assists with the monitoring of their loan portfolios.

by Megha Bhattacharya
Market Analyst at IBS Intelligence