London-based open banking platform Railsbank has raised £28 million funding.
Billed as ‘Banking-as-a-Service‘, Railsbank’s APIs allow companies of all types to build financial services into their products.
MiddleGame Ventures and Ventura Capital, both existing investors in Railsbank, co-led the round, with Anthos Capital, Global Brain, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan and Firestartr also participating.
The investment will support its global growth and product expansion, including the launch of ‘Credit Cards as a Service’.
Nigel Verdon, co-founder and CEO of Railsbank, said: “We are thrilled to have the support of world-class investors who bring a highly strategic network to help us continue with the vision, with zero pivots, that Clive, my co-founder, and I started with in 2016.
“Over the past four years, we have built a global winning team and expanded our product into credit and data-driven insights, enabling any fungible product, such as money, digital assets, kilowatt hours, gas units, carbon credits, reward points, telco minutes, to be spent as money.”
This year Railsbank has signed two partnerships with Visa and secured investment from the payments giant, as well as acquiring Wirecard.
Mo El Husseiny, Ventura Capital, said: “Ventura Capital is delighted to be the largest investor in this investment round, a commitment made on the strength of Railsbank’s clear technology leadership in the space, and Nigel and the executive team’s deep experience of the traditional global financial system.
“We expect Railsbank to be the category winner in Banking as a Service due to their beautifully scalable global business model and the winning client interviews we have initiated.
“We are absolutely excited to embark on the next phase of Railsbank’s growth and will remain a supportive shareholder for future capitalisation opportunities.”
Railsbank also recently announced it will offer its complete platform, including BaaS, Cards as a Service, Compliance as a Service and the first-of-its-kind Credit as a Service to FinTechs, enterprise companies and consumer brands in the USA.
The firm is headquartered in London and has offices in Santa Monica, Singapore, Vilnius, Munich, Newcastle, the Philippines, Malaysia, Vietnam and Sri Lanka.