The round was led by Karma Ventures and BlackFin Capital Partners, with additional support from Plug and Play Ventures, Siena Capital and angel investor Ott Kaukver, who is the ex-CTO of Twilio and Skype.
Modularbank’s cloud-agnostic core banking platform, built with an API-first approach, allows banks, financial services companies and any other business such as retailers, utility companies or telemedicine providers, to seamlessly integrate its modular banking technology into their existing infrastructure. Using Modularbank, they can easily roll out innovative financial services which reflect customers’ specific needs and ambitions, and boost sales and enhance customer loyalty.
“There is a wave of digitalisation and embedded finance on the horizon,” Modularbank CEO Vilve Vene said and added that Modularbank was set up to enable banks and other customer-facing businesses to devise and roll out personalised banking services quickly and easily.
Since it was founded in 2019, Modularbank has seen strong demand for its next-generation core banking platform and already achieved impressive growth.
“In less than 24 months of development, [Modularbank] is already ahead of many competitors,” said Michele Foradori, Investment Director at BlackFin Capital Partners.
“Our reference calls with tier 1 banks and fintechs confirmed that Modularbank is unrivalled among its competitors, in terms of substance and depth of understanding of customer needs around core banking,” noted Margus Uudam, Founding Partner at Karma Ventures. ”The team has been building core banking solutions for more than twenty years and is incredibly well-positioned to become the next global leader.”
Shows a positive cash flow
Modularbank has been cashflow positive since inception and has gained a list of influential customers, including one of the largest financial services groups in Finland, a leading retail group and a Frankfurt stock exchange-listed financial services institution operating in 23 countries. It has also recently partnered with Nets, one of Europe’s largest payment card processors.
The funding will initially be used to set up commercial operations, including an office, in the UK, and to increase operations in DACH and Southern Europe from Modularbank’s European base in Berlin. The company currently has 35 staff across Europe and aims to increase headcount to 100 by the end of 2021.