The Currency Cloud, a London-based financial technology (fintech) start-up that acts as an engine for international payments, revealed today that it has raised $10 million (£5.9 million) in its latest funding round.
The Series B round was backed by Atlas Ventures, Anthemis Group, Notion Capital, XAnge Private Equity and Silicon Valley Bank.
Mike Laven, CEO of The Currency Cloud, said the money will be used to refine the platform and expand to other geographies.
The company, established at the start of 2012 in London’s Square Mile, has a software-as-a-service offering that allows businesses to bypass the traditional banking world.
Laven believes that traditional forms of international payments don’t work, claiming that The Currency Cloud brings similar levels of efficiency and simplicity to businesses that Stripe brings to consumer payments.
“While 85 percent of international payments go through banks, more and more businesses are now turning to us to provide their international payments capabilities," he said. "Unlike other payments providers, we make cross-border payments transparent and frictionless. New clients can also get set up with our service quickly via our developer-friendly API.”
A number of other fintech start-ups, such as Azimo and TransferWise, as well as e-commerce solutions like Sofort and Zippcard, are already using The Currency Cloud's platform.
Total transactions made over The Currency Cloud’s network have increased twelvefold year-on-year to the extent where it is now responsible for moving billions of dollars around the world every year.
The latest funding round, which compliments the $9 million (£5.36 million) invested in the company in 2012, contrasts with comments made last week by Deputy Mayor of London, Kit Malthouse.
Speaking at the launch of Startupbootcamp FinTech, a new accelerator in London, Malthouse, said: “Our basic problem is access to venture capital. On the West coast [of the US] they [venture capitalists] compete for opportunities, rather than the other way round.”
Malthouse's remarks were made after Clare Flynn-Levy, CEO of London-based fintech start-up, Essentia Analytics, said she and many other fintech companies are in a "post-seed, pre series A, funding gap", despite having a strong customer base and plentiful demand.