Flagstone raises $138m investment from Estancia Capital Partners

By Gloria Methri

Flagstone, the UK-based cash deposit platform, has announced a £108 million ($138 million) equity investment by Estancia Capital Partners. Under the terms of the deal, Estancia takes a minority stake in the Flagstone business.

Launched in 2015, Flagstone is one of the largest UK cash savings platforms by the number of banks and savings accounts on its panel.

Individual savers, small and medium-sized enterprises (SMEs) and charities using Flagstone can access over 200 savings account offerings available from 60 leading cash savings providers.

The deal combines primary and secondary investments. The primary investment will be used to further consolidate Flagstone’s position in the cash deposit market. The secondary investment will be used to reward Flagstone’s earliest backers, enabling them to realise a significant return on their investments.

Simon Merchant, Co-Founder and CEO of Flagstone said, “At a time when funding capacity is down on a global scale, Estancia’s investment and market expertise provides us with the firepower necessary to capitalise on the opportunities ahead of us, whether those be through organic growth, partnership and acquisitions, and prompt further consolidation of our market leadership position.”

Takashi Moriuchi, Co-Founder & Managing Director of Estancia added, “We are excited to mark our entry into the UK savings market at a time when the opportunity to disrupt this status quo is enormous, and innovators like Flagstone must take the lead. Flagstone consistently demonstrates its ability to meet its ambitious client growth targets by providing an easy-to-use platform, an excellent array of cash management solutions across yield and maturity options, and industry-leading levels of service that clients value.”

Andrew Thatcher, Co-Founder and CEO of Flagstone International said, “As we mark this important milestone, we are delighted to work with an investment team with the track record and international expertise that Estancia brings. It is evident that the market opportunity is significant for our business on a global scale, and we are excited to take advantage of that and move our business on to the next stage.”