Railsbank eyes unicorn status as looks to raise $100m

Railsbank, which offers several B2B banking services to fintechs and non-financial brands, is currently working with bankers on plans to raise the funds, with the funding round expected to be completed in the coming months.

Digital banking services provider Railsbank is planning to raise $100m in new funding, which if successful would propel it to unicorn status.

Railsbank, which offers several B2B banking services to fintechs and non-financial brands, is currently working with bankers on plans to raise the funds, according to a Sky News report.

The London-based company, founded in 2016, currently operates in the UK, Europe, APAC and the US.

Set up by fintech veterans Nigel Verdon and Clive Mitchell, it recently bolstered its presence in APAC with new hubs in Singapore, Vietnam, Malaysia, and Australia.

Railsbank hit the headiness in 2020, when it bought the UK assets of Wirecard.

FT Partners, the fintech-focused investment bank, is understood to be working on the funding round, which is expected to close in the coming months.

Railsbank raised $70m last year from investors including Anthors Capital and Outrun Ventures. 

That funding round was said to have left Railsbank close to unicorn status.

And this latest round would tip it over the edge of the $1bn valuation needed to make it a uncorn.

Being elevated to unicorn status would mean that Railsbank would join the likes of Revolut, Checkout.com, Oaknorth, Starling Bank and Monzo as other British unicorns.

Railsbank declined to comment.