Bank of London raised £42 million from investors last month before HMRC issued a winding-up petition against the company over unpaid taxes.
The technology-led clearing bank, which is now said to have settled the debt – of which directors claimed they were “unaware” – met with the Bank of England to discuss its governance practices over the weekend, according to the Financial Times.
The firm’s founder Anthony Watson (pictured) stepped down as CEO last week for an advisory role and was replaced by Stephen Bell, former chief risk & compliance officer.
The funding round in August was led by Luxembourg-based Mangrove Capital Partners. Mangrove CEO Mark Tluszcz has sat on the board of the company since 2018.
In a press release which did not mention the tax situation, HMRC or Bank of England meeting, Bank of London said it was celebrating two milestones: customer deposits passed £500m in August, having more than doubled since the start of the year, while it has now onboarded its 100th institutional client. It has more than 4,500 clients in total.
“The Bank of London’s ability to close an over-subscribed £42 million funding round speaks to the confidence investors have in its leadership and unique model,” said Tluszcz. “The bank is well-positioned to redefine the future of financial services and we are more than happy to support it.”
Bank of London raised £33m in an extension to its Series C round early last year, which at the time took the company’s total capital raised to $160m. The bank reported losses of £12.7m in 2022.
“Our banking model is built on security and simplicity,” said Bell. “By holding deposits at the Bank of England, businesses have full confidence in their funds being available at all times.
“Our success in completing this £42 million funding round underscores investor belief and confidence in our vision, and I am excited to take over leadership of The Bank of London as it continues to grow.”
Bank of England made a bid to rescue the UK arm of the collapsed Silicon Valley Bank last year, losing out to HSBC.