The scale-up capital takes the total amount raised to £24.5m and will enable Modulr to accelerate its vision of enabling partners and direct clients to quickly and easily integrate new payment services into their core products.
In the Industry 4.0 era where automation is boosting the economy the goal with this investment is to help increase productivity for businesses across the UK through automated supplier payments and account reconciliation – cutting out as many manual processes as possible.
Confidence within the global B2B transactions space is growing and was given another boost earlier this month following a report by Juniper Research, featuring Modulr, showing transactions processed by pureplay digital operators will reach $14tn by 2023, up from $6.7tn in 2018.
The scale-up investment is one of the latest milestones in Modulr’s success story following two rounds of funding reaching £10.5m in October of 2018, expansion with new offices and 30 new jobs in Scotland, and the rapid expansion of the senior leadership team across all offices.
Additionally, in first few months of 2019 Modulr onboarded travel payments experts Paxport and cloud accounting and payroll service provider Sage to provide a full range of B2B payment services. And this month Modulr’s platform exceeded £10bn in the value of payments in and out, since the start of 2017.
The scale-up capital will enable Modulr to accelerate its vision of enabling partners and direct clients to quickly and easily integrate new payment services into their core products. The Modulr platform delivers a fully integrated service providing a fast, easy and reliable digital alternative to processing payments via traditional business and corporate banking.
The capital will help increase the speed at which new payment types and functionality are added to the Modulr platform which will accelerate growth into existing industry verticals as well as supporting entry into new industry verticals.
Myles Stephenson, chief executive of Modulr, said: “We’re extremely pleased to have completed our latest funding round, led by Frog Capital, and to have found a likeminded investor to work closely with the leadership team and our existing lead investor, Blenheim Chalcot, to pursue the significant global opportunity for our business.
“We’ve rapidly demonstrated the size of the market opportunity having processed more than £10bn of payments through the platform in our first two full years of operation. The investment allows us to take the next step in pursuing our vision to become the world’s leading digital alternative for commercial & wholesale payments”.
Jens Düing, senior partner at Frog Capital, said: “Ever since the second Payment Services Directive (PSD2) we have monitored the markets across Europe for leading innovative scale-ups addressing this sizeable segment. Modulr stood out with the quality of its team, its product and the unrivalled traction the company has already managed to achieve.”
Rob Devey, chair & senior non-executive director, Modulr, & advisory partner, Blenheim Chalcot, said: “We are delighted to have Frog onboard and we are greatly looking forward to working together to capture the massive opportunity that lies ahead.”