London-based fintech firm Flagstone, a cash deposit marketplace, has raised £12m in venture capital in a round led by OMERS Ventures and supported by existing investors including Kindred Capital and Moneysupermarket Group plc.
Flagstone was founded in 2013 and has grown rapidly, having transmitted more than £5bn in deposits since 2015.
The business provides individuals, wealth managers, businesses and charities with access to hundreds of cash deposit accounts, many with exclusive interest rates, from 44 banks including high street names such as HSBC and Nationwide as well as a host of challenger banks.
Simon Merchant, Co-Founder and Co-Managing Partner of Flagstone, said: “Raising growth capital from leading investors such as OMERS Ventures is a testament to the strength of our business model and the great work that the Flagstone team does every day to support clients with protecting their cash deposit investments. This new financing will support the acceleration of our plans to extend our penetration of the UK market to new customer segments.”
Harry Briggs, Managing Partner for Omers Ventures in London, said: “The Flagstone team impressed us from the start. The founders know this market inside out and have quietly built the runaway market-leader in the UK by addressing systemic issues in the banking system by using smart technology to help empower users to earn more interest income and reduce risk. In these uncertain times, everyone – households, small businesses, charities – is anxious about cash, and Flagstone helps people make their money work harder for them at the click of a button. We are very much looking forward to working with the team.”