UK cash deposit platform Flagstone lands £108m investment from Estancia Capital Partners
UK fintech Flagstone has received a £108 million equity investment from US private equity firm Estancia Capital Partners.
Flagstone co-founders Simon Merchant (left) and Andrew Thatcher (right)
The raise – one of the largest seen in the UK fintech sector this year – comprises of both primary and secondary investments, the first of which Flagstone says it plans to use to “consolidate” the position of its cash deposit platform within the UK’s £1.7 trillion savings market.
To do this, the fintech says it plans to invest some of the funds to boost its brand image, industry partnerships and customer service experience.
Following this, Flagstone says it will apply the secondary investment to provide “significant” returns to its “earliest backers”.
As part of its investment, Estancia Capital Partners will take a minority stake in the company. It expects to close the transaction in Q2 of this year upon receipt of the relevant regulatory approvals.
Estancia has also installed Takashi Moriuchi, its co-founder and managing director, and Keegan Mitchell, its vice president, to the Flagstone board of directors.
Likewise, Darrin Jeffries, COO and managing director of Estancia, has been assigned as board observer.
Based in London and launched in 2015, Flagstone provides access to savings accounts across more than 30 partner banks for businesses and individuals, and claims over 600,000 customers with total assets under administration of £11 billion. The firm has recently formed partnerships with Saga and SmartSave Bank.
Simon Merchant, co-founder and CEO of Flagstone, says the company’s latest capital raise “provides us with the firepower necessary to really capitalise on the opportunities ahead of us, whether those be through organic growth, partnership and acquisitions”.
