Bank of London secures £42m in oversubscribed funding round

September 9, 2024

Bank of London, a UK-based clearing bank and embedded banking service, has announced a successful £42m funding round.

According to UKTN, this fresh capital injection comes amid ongoing tax disputes but hasn’t wavered investor confidence.

The funding round, completed in August, was oversubscribed and led by Mangrove Capital Partners, a Luxembourg-based firm known for its early investments in technology giants like Wix and Skype. This indicates strong market trust in Bank of London’s business model and growth trajectory.

Stephen Bell, CEO of Bank of London, expressed his optimism about the future, stating, “Our success in completing this £42m funding round underscores investor belief and confidence in our vision, and I am excited to take over leadership of The Bank of London as it continues to grow.” His statement was echoed by Mangrove Capital Partners CEO Mark Tluszcz, who highlighted the investors’ confidence in the bank’s leadership and innovative approach.

The funds are earmarked for expanding the bank’s technological capabilities and enhancing its customer service to institutional clients. This funding will also support the bank in doubling its customer deposits, which have already passed the £500m mark this year and are expected to exceed £1bn by year-end.

However, the bank has faced challenges recently, including a winding up petition from HMRC due to unpaid taxes—an issue the bank attributed to an “administrative” delay, now resolved. The news broke shortly after founder Anthony Watson stepped down as CEO, moving into a senior adviser role.

Despite these setbacks, the Bank of London remains strong, with significant capital and liquidity. It has also reached a milestone of onboarding its 100th institutional client and now serves over 4,500 clients.

Last year, the bank attempted to acquire the UK arm of Silicon Valley Bank following the collapse of its US parent but was outbid by HSBC.

“The Bank of London’s ability to close an over-subscribed £42m funding round speaks to the confidence investors have in its leadership and unique model,” Mangrove Capital Partners CEO Mark Tluszcz said.