RegTech and open banking platform Railsbank has raised $10m in its latest investment round.
The Series A investment round was led by Moneta Capital, the venture capital firm specializing in FinTech and InsurTech companies.
Meirav Har Noy is a general partner and co-founder at Moneta Capital. She stated that the firm shared “Railsbank’s vision for the democratization of the financial services industry via API’s.”
Har Noy added, “While API democratization has turned over industries such as payments, telephony and travel, it has not taken over the wider financial services industry, which is still painful for both developers and consumers. I am thrilled to invest in Railsbank as it transforms financial services and unleashes a massive new generation of innovation.”
VC firms CreditEase, Clocktower Technology Ventures and insurance company Singapore Life participated in the round too. Several existing investors also joined the raise.
CreditEase most recently made the headlines when it led Upgrade’s, the online credit platform, $62m Series C round.
Railsbank will use the money to expand across the globe, looking at taking a slice out of the American, Australian and Southeast Asia markets. As part of this push, it announced it will open new offices in Singapore. These new premises are designed to act as a gateway into Southeast Asia.
“Our Singapore office is a central part of our expansion strategy,” said Nigel Verdon, co-founder and CEO of Railsbank. “It will not only serve our existing client base, but will allow us to attract new customers in a region, which is experiencing huge growth in the financial services sector and will allow us to fulfil our social mandate of financial inclusion.”
The firm will also use the money to improve its core product proposition from banking, payments and cards into APIs for other financial services including insurance and credit.
Commenting on the new raise, Verdon said, “We are delighted to welcome our new investors who join our amazingly supportive investor list. Railsbank is at a key stage of its development and we are moving into a period of sustained expansion. Our industry leading products and highly skilled management team are being leveraged across a growing customer base and we are continually being presented with opportunities on a global scale.
Singapore has recently made a push to establish itself as a thriving and trustworthy FinTech space. For instance, it has announced it would open up for new digital banks to get licensed to operate in the country. Singapore is also taking steps to prevent money laundering form happening.
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