Modularbank secures €4m in seed funding for core banking push

Just weeks after striking a partnership with payments processing giant Nets, Modularbank has secured €4m in seed funding to accelerate its growth.

Led by Karma Ventures and BlackFin Capital Partners, the funding round also included cash from Plug and Play Ventures, Siena Capital and angel investor Ott Kaukver.

Chief business officer Rivo Uibo said the funding would be used to establish Modularbank’s commercial operations in the UK, including establishing an office, along with expanding the fintech’s reach in France DACH and Southern Europe based out of Modularbank’s Berlin HQ.

“This funding round will play a crucial role in helping us continue to develop leading-edge solutions that move banking into the future – and establishing Modularbank as the next-generation core banking platform of choice,” he added.

Hiring is also on the cards, with Modularbank aiming to reach 100 employees by the end of next year, with a focus on product and commercial, up from its 35 staff currently spread across Europe.

As the name suggests, Modularbank’s focus is to offer financial services modules for incumbent financial institutions, challenger banks or any business looking to embed finance into its offering, all built around Modularbank’s core banking platform.

“Increasingly, people are demanding more flexible and convenient services that fit around the way they work and live and in response, there is a wave of digitalisation and embedded finance on the horizon, beginning to build,” said Modularbank CEO Vilve Vene.

“To harness this momentum there is a real need for lean, yet sophisticated core banking technology and that’s where Modularbank comes in, as we do exactly that.”