Payments firm Modulr said it will create more than 50 jobs as a result of raising £20m of new finance.
The Edinburgh-based fintech said it would use much of the cash to expand its accountant dashboard into a full accounts payments control centre aimed at small firms.
It said the move would create “a minimum 53 highly skilled technology jobs” at its base in Scotland’s capital, doubling the number of staff at the business.
Half the cash comes from the £10m the firm was awarded by the Banking Competition Remedies in August, funded by Royal Bank of Scotland (RBS), aimed at boosting payment processes for small businesses. The move is part of European Union conditions attached to the £45bn Government bailout of RBS at the height of the financial crisis more than a decade ago.
Boost for small firm payments
Modulr was committed to matching the funding handed to it by the Banking Competition Remedies in the summer.
The business said work on its accounts payments control centre, will “provide greater control, automation and efficiency for its accountant and small business clients”.
Currently around two million small firms rely on the services of 25,000 small accountancy practices across the UK to help run their businesses, according to an EY report on small business banking last year.
“This is currently extremely challenging due to existing business banking services not providing for the specific needs of accountants when operating these services,” said Modulr in its submission to the Banking Competition Remedies.
This latest cash boost comes after the firm raised £14m in February from Frog Capital and Blenheim Chalcot, both IT-focused investment houses.
Modulr chief executive Myles Stephenson said: “Our base here will be absolutely critical as we work to drive innovation and competition in our sector, and to make money flow more efficiently through the economy.”
Edinburgh’s technology sector was recently ranked as second only to London in scale, according a government-backed Tech Nation report in May. It said the Scottish city contributed nearly £4bn to the economy last year, employing almost 60,000 people, with the average tech sector salary reaching £42,500.
Cabinet secretary for finance, economy and fair work Derek Mackay said: “Modulr is a valuable member of Scotland’s fintech community and I welcome this further investment that will create more high-quality jobs. This will take the company to over 100 employees in Edinburgh and highlights Scotland’s attractiveness for investment in a very competitive sector.”