UK-based Fintech Farm, a startup that provides technology to medium-sized banks in developing markets to build digital tools, has raised USD 32 million in Series B funding.
The capital comes from an initial Series B round, which was led by London-based venture firm Nordstar, and an extension Series B round led by the London Stock Exchange-listed Bank of Georgia. The company previously raised a USD 7.4 million round in 2022 led by Flyer One Ventures and Solid with participation from TA Ventures, Jiji, u.ventures, and AVentures Capital.
Building banks for emerging markets
Fintech Farm — which launched in 2020 — partners with medium-sized banks in emerging markets looking to build neobank apps but lacking digital know-how. The startup differs from other Banking-as-a-Service (BaaS) players, as it focuses on providing operational support rather than regulatory or infrastructure services.
The startup’s officials said they have a technology which they call ‘a neobank in a box’ — that covers everything one needs to build a big and profitable digital bank. The core features it offers users are reminiscent of many of those offered by neobanks in Europe — debit and credit cards, Buy Now, Pay Later, stock investment; the standard products one would expect from a retail bank.
Fintech Farm has so far launched in Azerbaijan, where it’s partnered with a local bank to create an app-based offering to over 1 million users, it says. In Vietnam, it’s worked with the country’s Orient Commercial Joint Stock Bank to create Liobank. Fintech Farm is compensated by the banks it partners with on a performance basis linked to the number of customers and revenues they generate for their clients.
The company is currently directing its efforts towards developing a fintech solution in India, aiming to enhance consumer access to credit. Highlighting the significant adoption of India’s digital payment system, the Unified Payments Interface, the startup finds it more feasible to collaborate with local banks in providing lending services.
