Modulr to invest £20m to supercharge Scottish fintech
- 30.10.2019 11:32 am
Edinburgh-based FinTech Modulr has today announced it will invest the majority of £20m in the Scottish fintech industry, to drive disruptive innovation and further boost Scotland’s growing prominence as a tech hub. The move is the latest step in Modulr’s ambition to radically transform SME banking, and its belief in Scottish tech talent to help achieve this vision.
Having established its main development hub in Edinburgh, Modulr will use the funding to create an additional minimum 53 highly skilled technology jobs in the capital. The FinTech will also nurture new technology talent in Scotland by committing to hire graduates from Scottish universities every year for the next five years. Modulr will also host payment education events in Glasgow and Edinburgh to teach SMEs how to make the most of its payment functionality.
The move comes after Modulr was awarded £10m from the BCR Capability and Innovation Fund (CIF), designed to drive innovation and boost competition in UK business payments. Modulr will also invest a matched fund of £10m, to deliver on its commitments to expand the benefit of the CIF to as many clients as possible.
The FinTech is focusing its growing technology team on building innovative solutions to provide SMEs with greater access to new payment services, including new products such as the Accounts Payments Control Centre (APCC) – which provides greater control, automation and efficiency for its accountant and SME clients.
Edinburgh’s technology sector was recently ranked as second only to London in scale by a recent Tech Nation report, contributing nearly £4bn to the economy last year and employing almost 60,000 people, with the average tech sector salary reaching £42,500.
This latest £20m funding comes on the back of £14m raised in February 2019 between new investors Frog Capital and existing investors Blenheim Chalcot.
Myles Stephenson, CEO of Modulr, comments: “Scotland is packed with fantastic technology talent, world-renowned universities and businesses, so we’re tremendously excited to be growing our presence in Edinburgh and investing to raise the profile of Scottish fintech. Our base here will be absolutely critical as we work to drive innovation and competition in our sector, and to make money flow more efficiently through the economy.”
Derek Mackay, Cabinet Secretary for Finance, Economy and Fair Work says: “I welcome the announcement of this award of £10m which is both great news for Modulr and great news for Scotland’s fintech sector.
“This award will enable Modulr to create more than 50 additional jobs at its Edinburgh operation by accessing the pool of highly-skilled people available in the surrounding area. This is further evidence of the strength and attractiveness of Scotland’s fintech sector and Edinburgh in particular which now has over 100 fintech companies established.”
Mark Hallan, Head of inward investment at Scottish Enterprise, adds: “Modulr is a valuable member of Scotland’s fintech community and I welcome this further investment that will create more high-quality jobs. This will take the company to over 100 employees in Edinburgh and highlights Scotland’s attractiveness for investment in a very competitive sector.
“We supported the firm’s expansion to Edinburgh last year and it joins many companies investing here from across the UK and globally who can access a talented, experienced workforce alongside a network of fintech companies.”
Modulr, which powers the likes of Sage, Revolut and Paxport, is a Payment as a Service API platform created for digital businesses that need a faster, easier and more reliable way to move money. Backed by Investors, Blenheim Chalcot and Frog Capital, Modulr has raised a total of £35m in funding since inception in 2016. The FinTech was most recently named as one of 25 Top Startups to work for in the UK by LinkedIn.