Cash deposit platform Flagstone lands £12m funding
Flagstone, a UK-based cash deposit platform used by Revolut and wealth manager St James’s Place, has bagged £12 million in funding, Sky News reports.
Led by Omers Ventures, the venture capital arm of one of Canada’s biggest pension funds, the round also received backing from existing investors including Kindred Capital and Moneysupermarket.com Group.
The fintech offers access to “hundreds” of deposit accounts from more than 40 banks including HSBC and Nationwide, transmitting money between accounts in search of the highest interest rates.
Since 2015, Flagstone says it has facilitated £5 billion in deposits. It serves consumers directly and through its business-to-business offering to banks, wealth managers and charities.
“This new financing will support the acceleration of our plans to extend our penetration of the UK market to new customer segments,” says co-founder and co-managing partner Simon Merchant.
Leading investor Omers Ventures says the deal, which was in discussion “for some time”, came down to Flagstone’s familiarity with the deposit market.
“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,” says managing partner at Omers Venture, Harry Briggs.
With some UK high street accounts paying as little as 0.01% in interest, Flagstone’s offering – designed to work money harder through access to more interest and less risk – is gearing up at a time when both consumers and businesses will be looking for more, especially post-coronavirus.
The platform lets customers take advantage of the protection offered under the Financial Services Compensation Scheme, which guarantees up to £85,000 for customer accounts.