Tallinn, Estonia-based fintech company Modularbank has raised €4 million to further bolster its core banking platform.
The round of "late seed funding" - the company was established last year - was led by Karma Ventures and BlackFin Capital Partners, with additional support from Plug and Play Ventures, Siena Capital and angel investor Ott Kaukver (the former CTO of Twilio and Skype).
The fresh cash will be used to set up commercial operations in the UK, the startup says, and to hire more engineers and product experts across Europe as it gears up for for a wider global expansion.
Modularbank's API-first banking platform was built to offer next-gen banking experiences for both retail and business banking, the company posits, enabling customers to pick (and remove) services as they go along as if they were Lego blocks. Its target customers include financial service providers and banks, as well as retailers, utilities or even telemedicine providers.
The company says it currently has 35 staff across Europe and aims to increase headcount to 100 by the end of 2021.
Financial services vet and Modularbank CEO Vilve Vene says: "Increasingly, people are demanding more flexible and convenient services that fit around the way they work and live and in response, there is a wave of digitalisation and embedded finance on the horizon, beginning to build. To harness this momentum there is a real need for lean, yet sophisticated core banking technology and that’s where Modularbank comes in, as we do exactly that. Modularbank was set up to enable banks and other customer-facing businesses to devise and roll out personalised banking services quickly and easily."