LHV UK, a banking services provider to over 200 FinTech and crypto companies, has raised €35m in funding, as it applies for a UK banking licence.
Part of the funding will be used for its banking licence application. The company will also use the equity to hire staff across its London, Leeds and Tallinn teams.
LHV UK’s move for a UK banking licence is part of LHV Group’s plans to separate the business operations from its retail bank LHV Bank, which is based in Estonia.
The FinTech company provides infrastructure for accounts, payment schemes, agency banking, acquiring and open banking, and credit, liquidity and foreign exchange.
LHV Group CEO Madis Toomsalu said, “Confidence in LHV’s plans and activities is strong as our offering was oversubscribed 1.75 times. It is gratifying that the Fundraise turned out to be attractive to existing and new investors, despite the subscription period taking place during a tense geopolitical environment and against the background of declining stock markets. I want to thank investors for their trust – this is a great result that will allow us to capitalise the new bank that we are looking to establish in the UK.”
Earlier in the year, Estonian InsurTech company DriveX closed a $1m investment to support its European expansion. The company digitises the vehicle inspection process through AI-powered technology. IT is currently focused on the auto industry.
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