Bank of London maintains $1.1bn valuation with fresh funding injection
Fintech clearing bank the Bank of London revealed today that it has bagged a fresh $40m funding injection as it gears up for full operations after winning its banking licence last month.
The London-based clearing bank, which is only the second such firm to launch in the UK in 250 years, said it had maintained its ‘unicorn’ $1.1bn valuation in the funding round led by Mangrove Capital Partners and 14W Venture Capital.
Clearing banks provide payments and transaction settling servicing to other institutions, with Bank of London becoming only the sixth “principal” clearing bank in the UK. The firm will allow unlicensed firms to offer banking products without the rigmarole of winning a banking licence
The fresh round follows a $90m Series C round in the final quarter of 2021 which first bagged the firm its valuation of $1bn.
A flat valuation for the firm comes amid a torrid period for fintech fundraising, which has seen high profile companies suffer heavy valuation ‘haircuts’. Investors globally have largely soured on loss-making firms and prioritised quicker routes to profitability.
Bank of London’s funding round comes despite the fact it is ‘pre-revenue’ and has yet to begin making any money. However, the firm’s chief Anthony Watson said it was now gearing up for growth after the banking regulator lifted the mobilisation restrictions on its banking licence last month.
“The expansion of our Series C at a continued valuation of $1.1bn is a testament to the trust we are building at The Bank of London,” he said in a statement. “Our investors believe in our vision to reshape banking for the betterment of all, powered by our unique patented technologies and our differentiated banking models.”
Alex Zubillaga, chief of Bank of London investor 14W, claimed that the new clearing lender was “by far the most transformative fintech in London”.
“The fintech industry has simply not kept pace with consumer trends and the need for tech innovation, particularly in the B2B and wholesale space, creating significant demand for a developer-friendly wholesale clearing and transaction bank built on modern APIs, intuitive software and patented innovations,” he said.