Scottish fintech sector gets £20m boost from Modulr
Business-to-business payment specialist Modulr is to invest some £20 million in the Scottish fintech industry, deepening its roots in Edinburgh including the creation of 50-plus highly skilled jobs.
The financial technology – fintech – business, whose main development hub is located in Fountainbridge, said the sum will “drive disruptive innovation and further boost Scotland’s growing prominence as a tech hub”.
It also said the move marks the latest in its ambition to “radically transform” small and medium-sized enterprise (SME) banking, and its belief in Scottish tech talent to help achieve this vision.
The news comes after Modulr was awarded £10m from the BCR Capability and Innovation Fund (CIF), designed to drive innovation and boost competition in UK business payments. Modulr – which powers the likes of Sage and Revolut – will also invest a matched fund of £10m.
Modulr is eyeing “innovative” ways to provide SMEs with greater access to new payment services.
This latest £20m funding comes on the back of £14m raised in February between new investor Frog Capital and existing investor Blenheim Chalcot. The fintech has raised a total of £35m since its inception in 2016.
Modulr boss Myles Stephenson said: “Scotland is packed with fantastic technology talent, world-renowned universities and businesses, so we’re tremendously excited to be growing our presence in Edinburgh and investing to raise the profile of Scottish fintech.
“Our base here will be absolutely critical as we work to drive innovation and competition in our sector, and to make money flow more efficiently through the economy.”
Scottish finance secretary Derek Mackay welcomed the award of £10m, which he said is a key boost for Modulr and Scotland’s fintech industry. “This is further evidence of the strength and attractiveness of Scotland’s fintech sector and Edinburgh in particular, which now has over 100 fintech companies established.”
Mark Hallan, head of inward investment at Scottish Enterprise, said: “Modulr is a valuable member of Scotland’s fintech community and I welcome this further investment that will create more high-quality jobs. This will take the company to over 100 employees in Edinburgh and highlights Scotland’s attractiveness for investment in a very competitive sector.
“We supported the firm’s expansion to Edinburgh last year and it joins many companies investing here from across the UK and globally who can access a talented, experienced workforce.”