UK fintech Modulr has secured £18.9m in funding to develop its platform and expand into new products and markets.
Growth capital firm Highland Europe led the funding round, with participation from existing investors including Frog Capital, venture builders and Blenheim Chalcot.
The investment has taken Modulr’s total funding received to £53.3m, delivering on the fintech’s commitment to match the £10m it was awarded from the Capability and Innovation Fund in August.
Myles Stephenson, Modulr CEO, said: “In the past year, we’ve experienced strong growth and gained access to key payments infrastructure. We have also positioned ourselves as a trusted payments partner for some of the most ambitious companies in the UK.”
Modulr will use the new funding to develop its product and services offering with the introduction of card issuing and deeper European payment capabilities. The aim is to enable the company to expand further into new markets.
“With Highland Europe, we have a partner which can help to further fuel this momentum. By investing in our infrastructure and product suite, we can provide our customers with a reliable service that’s easy to access and simple to use,” Stephenson added.
“This is important, particularly in the face of this tougher business landscape. With this new investment we’re ensuring customers’ payments infrastructure can continue to work seamlessly in the background. This gives them one less thing to worry about.”
Modulr’s business model
Modulr, founded in 2016, was built in partnership with Blenheim Chalcot. Since its launch, Modulr has processed more than £25bn worth of payments through its partner clients.
In addition, the fintech is designed to make the payment process more efficient for businesses. Through its platform, businesses can automate payment flows, embed payments into their platforms and build new products.
Speaking on Modulr’s payments model, Laurence Garrett at Highland Europe, said: “No-one can deny the opportunity of the business payments market, some five times the size of the opportunity presented by consumer payments, and Modulr is the leading platform in this space.
“We were impressed with its strong operational resilience and its history of sustained stable growth within the B2B payments industry. Myles and the team have firmly established the fintech as the go-to provider of payments services for ambitious businesses. We look forward to fuelling this growth further.”
Furthermore, earlier this year, Modulr became a principal issuing member of Visa.