Moneyhub secures GBP 40 million in funding

Monday 24 October 2022 12:55 CET | News

Moneyhub, an Open Finance platform, has secured an initial GBP 35 million in funding from high profile backers Legal & General and Lloyds Banking Group.

An additional GBP 5 million debt facility was provided by Shawbrook. Legal & General’s investment is partially subject to regulatory approval.

Lead Investors Legal & General and Lloyds Banking Group will take minority stakes in the business. Both Lead Investors will also each look to improve their commercial propositions with Moneyhub’s services, using its Open Data technology to support strategic goals.

The investment will help to accelerate the ongoing development of Moneyhub’s solutions, including those around pensions and wealth, payments, distribution, affordability, and Data-as-a-Service. While Moneyhub is already present in several countries, the new funding will expedite the internationalisation of its technology.

The Lead Investor funding forms part of a larger raise which has been sought to support the continued acceleration of Moneyhub’s growth across its spectrum of Open Banking, Open Finance, and Open Data solutions. Moneyhub has been growing across its chosen fields through understanding and delivering for its clients, and this funding will allow it to deliver further transformational expansion of its proposition, extend its capabilities, and improve its global client reach.

Moneyhub’s offerings

Moneyhub works with over 100 clients helping them to unlock opportunities by creating personalised products and services aimed at putting customers at the heart of the business in order to drive innovation and reduce costs.

Moneyhub, an Open Finance platform, secures an initial GBP 35 million in funding from Legal & General and Lloyds Banking Group.

Moneyhub currently has over 30 high-profile enterprise clients within financial services, retail, and telecoms, reaching 150 million end-users across the UK and worldwide. Moneyhub works with each client on an individual basis to ensure the technology explains and accelerates their unique capabilities and strategic aims.

This is Moneyhub’s largest funding round to date and follows a fundraise in early 2021, led by Sir Peter Wood, founder of the technology-based insurance disruptors Direct Line Group, and Esure, and founder of investment vehicle SPWOne. That funding was built on the previous investment round which included Nationwide Building Society Ventures. Notably, all initial investors have participated again in that round, showing their commitment and confidence in Moneyhub’s trajectory.

Funding for fintechs

While the fintech sector was still holding on well in Q1, it’s caught up to the market shakeups affecting other sectors. Fintech startups raised GBP 19 billion globally in Q2 2022, the lowest in the last five quarters and down 39% from the peak in Q4 2021.

Fintech remains the most invested industry worldwide but is suffering more than other sectors. The pullback is more evident in mega rounds and late stage. Mega rounds are at their lowest in more than one year, dropping 40% from their peak in Q3 2021. While the total number of rounds is holding on much better.

Today, looking at Q3 2022 data from CB Insights, it’s clear that the fintech funding boom is behind us; even more, global fintech funding activity is now back to where it was before 2021, indicating that last year was more aberration than new normal for the startup category.

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Keywords: funding, banks, Open Finance, investment, Open Data Economy
Categories: Banking & Fintech
Companies: Legal and General, Lloyds Bank, Moneyhub
Countries: World
This article is part of category

Banking & Fintech

Lloyds Bank