UK fintech Railsbank is in the process of raising $100m (£74m) in new funding that is likely to put its valuation over $1bn, according to reports.
Sky News reports that Railsbank, which provides embedded finance and open banking services, is working with investment bank FT Partners on the funding round.
If the funding round pushes its valuation over the $1bn mark then Railsbank will follow the likes of Starling Bank, Monzo and Wise in joining the UK fintech unicorn club.
It would also represent a strong start for the UK’s fintech sector following a bumper 2021, in which companies attracted a record $11.6bn in capital.
Railsbank was founded in 2016 by fintech veterans Nigel Verdon and Clive Mitchell.
Verdon said last year that Railsbank was “transforming the finance industry in the same way that Apple did to the music industry when they created iTunes”.
Its services are used by other fintechs, supermarkets, telcos and consumer brands all over the world.
Last year the London-headquartered company bought assets from Wirecard, the German financial company that collapsed following an accounting scandal.
Railsbank raised its first seed round in 2017. It then raised £28m in 2020 to fund its US expansion plans, before securing just over £50m in 2021.
It is now active in Europe, Asia and the US. The latest fundraise is expected to close in the “coming months”, Sky News reported.
Railsbank and FT Partners declined to comment to Sky News. UKTN has approached the fintech company Rafor comment.
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