Payments provider Modulr clinches £18.9m despite coronavirus

By Oliver Smith on Wednesday 13 May 2020

Digital Banking

Card issuing and European expansion are on the horizon.

Payments provider Modulr clinches £18.9m despite coronavirus
Image source: Myles Stephenson/Modulr.

Despite headlines that fintech investment is hugely down since the outbreak of coronavirus, funding is continuing to flow for some.

This morning it’s payments platform provider Modulr announcing an £18.9m round led by Highland Europe, existing investor Frog Capital and partner Blenheim Chalcot.

“In the past year, we’ve experienced strong growth, we’ve gained direct access to key payments infrastructure and have positioned ourselves as a trusted payments partner for some of the most ambitious companies in the UK and beyond,” said Modulr CEO Myles Stephenson announcing the funding.

Modulr was among the recipients of Pool C of the Banking Competition Remedies (BCR) fund, receiving £10m in August 2019 along with Atom Bank, iwoca and Currencycloud.

Today’s funding will be specifically used to add card issuing capabilities and deepen Modulr’s European payments abilities with the startup soon looking to new markets.

Since launching in 2015 Modulr has processed more than £25bn in payments from its partner clients including Sage, Liberis, Salary Finance and Iwoca.

Several reports in the last few weeks have suggested that fintech funding has fallen sharply in the last few months, with CB Insights describing Q1 2020 as “the worst Q1 since 2016”.

Despite this, dealflow continues for the right companies with the right products, as Countingup, N26, Onfido and others have proved in recent weeks.

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