Top 4 FinTech funding rounds- February 2021 (UK & Europe)
By Megha Bhattacharya
Studies have shown that the COVID-19 pandemic has adversely affected the FinTech ecosystem. The number of FinTech deals has taken a hit as investors are choosing mature companies over early-stage deals to put their money in. Although some FinTechs received hefty investments, Emerging Payments Association’s analysts revealed a significant contraction for the market, with fintech funding in Q1 2020 already down $2 billion from Q4 2019.
Check out these four noteworthy European FinTech funding deals that took place in February 2021 –
Monzo, the UK-based challenger bank that allows customers to access a range of products and services, recently announced that it will be raising a £50 million extension in Series G round from existing shareholders and a new San Francisco-based VC firm Octahedron Capital. The new funding will take the amount raised by the digital bank during the pandemic to £175 million.
Reports stated that Monzo now has almost 5 million customers, up from 1.3 million in 2019. Its total weekly revenue is now 30% higher than pre-pandemic, with over 100,000 paid subscribers across Monzo Plus and Premium in the last five months.
Recently, Monzo announced that its founder Tom Blomfield is reportedly quitting the company at the end of the month, according to media reports. He held the position of the CEO till last May, post which he assumed the newly created role of president. He was replaced as chief executive last year by TS Anil, a banking veteran with experiences at Citi, Standard Chartered, Visa, and Capital One. The decision to depart the challenger bank will see Blomfield leave his day-to-day operations at the bank, but he will be retaining a stake in the business.
German FinTech Penta closed €30 million ($36.3 million approx) in a Series B+ top-up round backed by existing investors such as finleap, HV Capital, RTP Global, Presight Capital, S7V and VR Ventures, ABN AMRO Ventures.
Recently, the FinTech announced a partnership with savings marketplace Raisin along with the release of a new range of corporate term and overnight deposits. The partnership is expected to allow Penta’s business customers to access higher interest rates by investing in Raisin deposit products through their accounts.
Last year, Penta secured €18.5 million in a funding round with new investors including RTP Global, ABN AMRO Ventures and VR-Ventures. The round was led by HV Holtzbrinck Ventures and RTP Global along with the participation of existing investor finleap. The FinTech states that Alex Pavlov, Partner RTP Global will join Penta’s board along with Barbod Namini, Partner HV and Michael Hock, CFO finleap.
Established in 2018 in Germany, Penta is the digital platform for business banking aimed at SMEs and startups.
Northmill Bank announced that it has carried out a capital round of SEK 250 million ($30 million approx) led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli. The new funding is expected to be used for geographical expansion and to boost the development of new products.
Northmill Bank AB was founded in 2006 and acts under the supervision of Finansinspektionen, the Swedish Financial Supervisory Authority, and is subject to the Banking and Financing Business Act.
Recently, Northmill Bank announced that it has become a member of the Swedish Central Bank’s payment system- RIX. The payment system’s membership is expected to allow the neobank to add a range of new banking products and features to its banking offer, as well as adding extra layers of relevance and customisation.
Trade Ledger has secured £13.5 million to complete its Series A funding round led by Point72 Ventures along with participation from Foundation Capital, who led the debt tranche closed previously, Court Lorenzini, founder of DocuSign, Hambro Perks, and other existing investors. The new funding is expected to help Trade Ledger to expand its sales, marketing and customer delivery teams.
Recently, Trade Ledger announced a number of leadership appointments along with a new advisory board in a bid to boost its leadership team and accelerate its growth in the market. It has appointed Paul Carmichael as the Sales lead in APAC region, Bakhtier Pulatov as the Global Head of Product and Roger Vincent as the Managing Director for the UK business.
Trade Ledger, established in 2016, is a cloud-native Banking-as-a-Service (BaaS) platform for SME & Mid-Market lending that supports secured lending categories including Invoice Finance, Commercial Loans (RCF), Equipment Finance, Asset-Based Lending (ABL), Supply Chain Financing & Factoring.
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