Flagstone, a cash deposit marketplace, has announced a substantial equity investment of £108m from US venture capital firm Estancia Capital Partners.
According to Finextra Research, since its inception in 2015, Flagstone has rapidly grown to become the UK’s largest platform for cash savings, distinguished by its extensive network of banks and savings account options.
This strategic investment marks a significant milestone for Flagstone, empowering it with considerable resources to expand its market presence. Flagstone is renowned for its innovative platform that caters to individual savers, SMEs, and charities. Users have the privilege of accessing a diverse range of over 200 savings account offerings from 60 different providers, either directly or via white-labelled FinTech platforms, financial advisers, or through brand partnerships.
The company boasts an impressive customer base exceeding 600,000 users, with its total Assets under Administration (AUA) surpassing £11bn. This figure has seen a consistent increase of over £1bn per quarter throughout 2023, indicating a growing interest among both personal and business savers to maximise interest earnings on their cash reserves.
Flagstone has demonstrated remarkable financial performance, achieving its first profitable quarter in December 2022 and maintaining profitability since. This financial milestone underscores the platform’s success and operational efficiency.
The new funding is earmarked for a variety of strategic initiatives aimed at bolstering Flagstone’s market leadership. According to Simon Merchant, co-founder and CEO of Flagstone, the investment from Estancia Capital Partners arrives at a critical time, enhancing the company’s capacity to seize emerging opportunities. Merchant emphasizes the potential for organic growth, strategic partnerships, and acquisitions, all geared towards further solidifying Flagstone’s dominant position in the market. “At a time when funding capacity is down on a global scale, Estancia’s investment and market expertise provides us with the firepower necessary to really capitalise on the opportunities ahead of us, whether those be through organic growth, partnership and acquisitions, and prompt further consolidation of our market leadership position,” Merchant noted.
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