UK challenger Lanistar lands £15m and sells 10% stake
Lanistar, a UK challenger bank hopeful, has landed £15 million in venture capital funding. The start-up says the new capital injection puts its valuation at £150 million.
The investment came from small London-based firm Milaya Capital. The backer received a 10% stake in Lanistar for its capital contribution.
The challenger is on track for a winter 2020 launch. It says it will use the £15 million to underpin this product launch.
In the meantime, it will grow its operational and customer support teams.
What is Lanistar?
Founded last year by Gurhan Kiziloz, Lanistar is yet to reveal its full product offering.
It claims to use “polymorphic technology” to offer a “customer-centric alternative” to personal finance offerings currently on the market.
“The modern customer has been seen as nothing more than a statistic on a balance sheet,” says Kiziloz.
The start-up hopes to reach a £1 billion valuation in “the next few years”. Like many UK challengers, it will focus on millennial and Gen Z consumers.
It says its banking products will focus on “lifestyle brands” in these consumers’ daily lives.
“The technology underpinning Lanistar’s product is the future of personal finance,” says Milaya Capital’s founder and CEO, Yasam Ayavefe.
“I believe that it will go on to change our lives forever, by letting us streamline our finances,” he adds.
Growth to date and beyond
In March, the fintech raised £2 million in seed funding from private financing and family contributions.
The Hammersmith-based start-up has already grown its team to 45 full-time staff.
In a statement, the start-up said it has plans to grow a 150-person support team in Greece too.
Last month, Lanistar partnered with California-based mobile payments and identity verification firm Jumio for its onboarding.