ClearBank raises $230 million funding from Apax Partners

Image Credits: TechCrunch

UK-based fintech company ClearBank has raised £175 million (approx. $230 million at present conversion rates) funding from Apax Partners. Though the post-money valuation has not been disclosed, as per PitchBook, based on ClearBank’s valuation of about £274 million at the end of December 2021, the current valuation is estimated to be a conservative figure of around $590 million.

ClearBank provides a clearing and embedded banking platform with its API seamlessly integrating the customer’s core banking system thus providing near real-time payment and innovative banking solutions to the user. Founded in 2015 and launched in 2017, the company today provides banking-as-a-service to its customers both for their business needs and for them to in turn provide the same to their customers.

“ClearBank is the first proven and fully regulated cloud-native clearing bank in the UK for over 250 years. Over the last five years we have demonstrated the success of our business model and through our work with leading financial service providers, helped to both unlock their potential and bring about positive and meaningful change for UK businesses and consumers,” said Charles McManus, CEO at ClearBank.

At present, the startup has 200 customers including Tide, Coinbase, and Oaknort that use the services to clear payments in the UK. The total asset value of its customers is estimated to be £3 billion (nearly $4 billion) covering over 13 million bank accounts. The fresh funds will be utilized for global expansion of its clearing and embedded banking services, initially in Europe later progressing into North America and Asia Pacific.

“Our revenue growth is the proof of the momentum we have been gathering since 2017. It is this proof point and our transformative effect on access to banking services, traditionally a space characterized by high barriers to entry, which has given us the credibility to partner with and deliver seamless and secure embedded banking for award-winning financial institutions, powerful fintech disrupters, and government bodies alike. The next challenge is delivering this innovation globally. To achieve this, we needed a strategic partner with the right cultural fit, sector expertise, and geographic experience, something we found in Apax Digital,” he added.