ukbased clearbank 175m apaxlundentechcrunch
ClearBank Secures $230M from Apax to Expand into Europe and the US
London, ClearBank, a pioneering UK fintech, has successfully raised $230 million in a funding round led by private equity firm Apax Partners. The company, known for its cloud-based financial rails that facilitate real-time clearance on payment transactions and other financial services, plans to utilize the new capital to expand beyond its domestic market and venture into new areas, including cryptocurrency exchanges.
ukbased clearbank 175m
Revolutionizing Financial Infrastructure
Founded in 2015 and officially launched in 2017, ClearBank has been disrupting the financial services industry by providing faster and more efficient transaction services through its innovative cloud-based platform. The recent funding marks a significant milestone for the company and signifies its continued growth and success in the market.
ukbased clearbank apaxlundentechcrunch
Although ClearBank has not disclosed its current valuation, CEO Charles McManus revealed that the firm had previously raised £195 million from various investors, which include Canadian businessman John Risley and private equity firms PPF Group and Norther Private Capital. Following Apax’s investment, ClearBank’s valuation has substantially increased. PitchBook estimates that as of the end of December, the company’s valuation stood at just under £274 million, potentially pushing the current valuation to approximately $590 million at its most conservative estimate.
ukbased clearbank 175m apaxlundentechcrunch
Existing Customers and Market Reach
ClearBank has already garnered a substantial customer base, boasting 200 clients that comprise major financial institutions and fintech companies using its cutting-edge infrastructure to enable swift transactions. Notable clients include UK-based businesses like Tide and Oaknorth, as well as international firms like Coinbase, which leverages ClearBank’s services for clearing and payments for its UK customers. These customers represent approximately 13 million bank accounts and hold assets worth nearly $4 billion.
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Addressing the Legacy Infrastructure Challenge
While the fintech industry has seen remarkable growth in recent years, many innovative services have been built on top of legacy infrastructure, leading to some inefficiencies and delays. ClearBank aims to overcome these challenges by providing an entirely new financial infrastructure that operates more efficiently and swiftly.
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ClearBank describes itself as the first clearing bank to launch in the UK in the last 250 years, disrupting the dominance of the ‘big four’ banks in the country (Barclays, Lloyds, HSBC, and NatWest). The company’s objective is to offer real-time services for a wide range of financial transactions. By consolidating its services into a single stack, ClearBank streamlines money movement, offers enhanced visibility into fund flow, and facilitates faster transactions.
clearbank funding
Expanding Globally and Tackling New Markets
With the latest investment, ClearBank plans to expand its services globally. The company will focus on providing real-time services for various financial needs and intends to facilitate interbank payments and multi-currency foreign exchange services to cater to international customers.
The growing trend of non-financial companies entering the financial services space presents an opportunity for ClearBank to provide the essential clearing and embedded banking infrastructure. As businesses embrace fintech solutions and financial services become integral to diverse industries, ClearBank’s platform is well-positioned to support their growth and facilitate seamless financial operations.
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Mark Beith, a partner at Apax Digital, expressed excitement about partnering with ClearBank and highlighted the platform’s capabilities. The collaboration between Apax and ClearBank aims to take the company’s revolutionary financial infrastructure on a global journey.
Conclusion
ClearBank’s successful funding round signals the emergence of a new generation of fintech startups committed to transforming financial infrastructure. With its cloud-based financial rails and real-time clearance capabilities, ClearBank is poised to revolutionize financial transactions and services, benefiting financial institutions, fintechs, and businesses alike. As the company expands its reach beyond the UK, the broader financial ecosystem can look forward to enhanced efficiency and faster transactions in the digital age.