Railsbank, the London-headquartered Banking-as-a-Service platform, has raised $37 million in new growth funding.
Leading the round is MiddleGame Ventures and Ventura Capital, which are both existing investors in Railsbank . Also participating is Anthos Capital, Global Brain, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan and Firestartr.
Nigel Verdon, co-founder and CEO of Railsbank, tells the injection of capital will be used to continue expanding the fintech’s global footprint and for further product development. This will include the launch of “credit cards as a service” in the U.S. and expand its product in APAC, including the Philippines, Indonesia, Malaysia, Australia and Japan. It will also double down on existing markets such as the U.K./Europe.
Asked what the upside of the Wirecard acquisition was, the Railsbank founder says it helps maintain an orderly market in the U.K. and Europe and helps protect the reputation of the fintech industry. Most immediately, Verdon says it allowed several million card holders to continue to operate their cards, “and customers could remain in business with minimal disruption”.
He also says the acquisition brought “hugely talented and experienced people” from Wirecard to Railsbank, and ultimately added “significant equity value” to the company.
Railsbank positions itself as a “utility” on which other companies — spanning fintech upstarts, challenger brands, to incumbent banks that want to re-factor their tech — can build and sell various financial services or add fintech features to their products.