Manchester-based fintech company OakNorth has secured a whopping $440 million which was led by Japanese conglomerate SoftBank through their vision fund along with Clermont Group. The fresh round takes the total capital raised by the company to over $1 billion as per Crunchbase. However, TechCrunch reports that the primary funding of the firm since its inception is $848 million. The other investors of the firm include FIC, Coltrane Asset Management, NIBC Bank N.V., EDBI, Toscafund Asset Management, and Indiabulls Housing Finance Limited.
The firm is working on developing a digital bank and a platform in order to help small and medium-sized enterprises by offering them loans. The platform which was started by Joel Perlman and Rishi Khosla in 2013 will use the freshly raised funding to ramp up their current tech abilities in order to issue fast and flexible loans to the UK business and property developers. The platform uses AI, big data and machine learning in order to assess the risk before lending the money.
OakNorth claims to have given away $3.7 billion and it has never seen a default or late payment. It has 34,000 savings accounts on their platform. Fresh funds will also be used for their global expansion with the U.S. market being the primary aim. It will partner with the US banks for their offerings.
Rishi Khosla, the CEO of OakNorth commenting on the fundraising said, "We decided that, with (SoftBank's) capital, and with their network, that we would be able to significantly expand the growth plans we have for the business."
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