U.K. banking-as-a-service (BaaS) Startup Railsbank closed a $37 million funding deal co-led by MiddleGame Ventures and Ventura Capital.
Also participating in the round were Anthos Capital, Global Brain, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan and Firestartr.
“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 [Mitchell], my co-founder, and I started with in 2016,” Nigel Verdon, co-founder and chief executive officer (CEO) of Railsbank, said in a statement on Thursday (Nov. 12).
“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,” he added.
The funding is being earmarked to launch credit cards-as-a-service in the U.S. and elsewhere as the BaaS platform grows its global footprint. The London-headquartered startup is striving to help startups and other firms “prototype, launch and scale financial products within their own customer experience.”
“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 with the traditional global financial system,” said Mo El Husseiny, founding and managing partner at Ventura Capital.
He added that the company anticipates that Railsbank’s scalable model will “be the category winner in Banking as a Service.”
Michael Meyer, co-managing Partner of MiddleGame Ventures, said Railsbank “has the best team in open finance” and the company has “explosive potential.” MiddleGame Ventures hosted the co-founders in their accelerator “and have supported Railsbank from the beginning.”
He added his co-founder Pascal Bouvier first remarked on Railbank’s BaaS platform in a blog post in 2016. “We connected with Nigel then as a two-person team … We look forward to exponential growth, particularly with our advice on U.S. and European strategies.”
In a PYMNTS interview, Verdon said today’s changing landscape of financial services has shown just how important it is that new services are introduced fast.
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