PayPal’s Ventures arm makes £9m bet on Modulr payments

Joining PayPal's investment portfolio alongside Monese, Raisin and Tink.

PayPal has added Modulr to the list of portfolio companies for its investment arm, PayPal Ventures, as part of a £9m investment in the fintech.

Modulr, which closed its last £18.9m funding round in May and raised £10m from the BCR last year, said it will use the cash to continue developing its products, growing team and customer base.

“More digital businesses are looking to incorporate payments into their existing user experience but either don’t have the expertise or the resources,” said PayPal Ventures partner Anil Hansjee. 

“Modulr is well-positioned to be an enabler of this trend and will undoubtedly expand end-users’ access to fast, reliable and secure financial services.”

Modulr joins the PayPal Ventures portfolio which includes familiar names like Monese, Raisin and Tink.

In September Modulr became the first non-bank to offer Confirmation of Payee through the Pay.UK anti-fraud scheme, and secured a European electronic money institution licence through its Central Bank of Ireland partnership in October.

To date Modulr has now raised £63.3m from investors including Highland Europe, Frog Capital and Blenheim Chalcot.

“This investment marks an important milestone for Modulr’s modern payments infrastructure,” said Modulr CEO Myles Stephenson.

“Modulr lowers the barriers to bringing payments into a platform, creating endless new possibilities for our customers while allowing them to focus on their core competencies. The investment from PayPal Ventures enhances our ability to execute on that vision.”