Moneyhub secures £40m funding

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Moneyhub, an Open Finance platform, has secured seed funding of £35m from high-profile backers Legal & General and Lloyds Banking Group.

An additional £5 million credit facility has been 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. The two lead investors will also each seek to enhance their business propositions with Moneyhub’s services, using its Open Data technology to support strategic objectives.

The investment will help accelerate the ongoing development of Moneyhub’s solutions, including those for pensions and wealth, payments, distribution, affordability and data as a service. While Moneyhub is already present in several countries, the new funding will accelerate the internationalization of its technology.

The funding from the lead investor is part of a larger raise that has been sought to support Moneyhub’s continued acceleration of growth across its portfolio of Open Banking, Open Finance and Open Data solutions. Moneyhub has grown in its core areas of understanding and delivering for its customers, and this funding will allow it to continue the transformational expansion of its proposition, expand its capabilities and enhance its global reach.

Moneyhub offers

Moneyhub works with over 100 customers to help them unlock opportunities by creating customized products and services aimed at putting customers at the heart of the business to drive innovation and reduce costs.

Moneyhub currently has over 30 leading corporate clients in financial services, retail and telecommunications, reaching 150 million end users in the UK and globally. Moneyhub works with each client on an individual basis to ensure technology explains and accelerates their unique capabilities and strategic goals.

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

Fintech funding

While the fintech sector held up well in the first quarter, it caught up with the market upheavals affecting other sectors. Fintech startups raised £19bn globally in Q2 2022, the lowest in five quarters and a 39% drop from the peak in Q4 2021.

Fintech remains the most invested industry in the world but is suffering more than other sectors. The recoil is more evident in mega towers and late stage. Mega towers are at their lowest in over a year, falling 40% from their peak in Q3 2021. While the total number of towers is holding up much better.

Looking at CB Insights Q3 2022 data today, it’s clear that the fintech funding boom is behind us; even more, global fintech funding activity is now back to pre-2021 levels, indicating that last year was more of an outlier than the new norm for the startup category.

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