Flagstone, the London-based fintech behind the UK cash deposit marketplace, has raised $15 million (£12.05 million) in venture capital.
The funding round was led by OMERS Ventures and supported by existing investors, including Kindred Capital and Moneysupermarket Group.
Flagstone was founded in 2013 and has transmitted more than £5 billion in deposits since 2015.
The fintech provides individuals, wealth managers, businesses and charities with access to hundreds of cash deposit accounts, many with leading or exclusive interest rates, from 44 banks including high street names such as HSBC and Nationwide, as well as a host of challenger banks.
Flagstone’s cash deposit marketplace enables clients to increase their interest income and manage their risk through diversification and greater use of UK Financial Services Compensation Scheme protection.
The fintech provides its cash deposit platform to clients of Revolut in the UK and is already the exclusive cash deposit platform for clients of Charities Aid Foundation, St. James’s Place, Quilter Cheviot, Tilney Group and many other wealth management firms.
Commenting on the new investment, Simon Merchant, co-founder and co-managing partner of Flagstone, said: “Raising growth capital from leading investors such as OMERS Ventures is a testament to the strength of our business model and the great work that the Flagstone team does every day to support clients with protecting their cash deposit investments. This new financing will support the acceleration of our plans to extend our penetration of the UK market to new customer segments.”
Harry Briggs, managing partner for Omers Ventures in London, said: “The Flagstone team impressed us from the start. The founders know this market inside out and have quietly built the runaway market-leader in the UK by addressing systemic issues in the banking system by using smart technology to help empower users to earn more interest income and reduce risk.”
“In these uncertain times, everyone—households, small businesses, charities—is anxious about cash, and Flagstone helps people make their money work harder for them at the click of a button. We are very much looking forward to working with the team.”