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HomeBankingUK cash deposit platform Flagstone lands £108m investment from Estancia Capital Partners

UK cash deposit platform Flagstone lands £108m investment from Estancia Capital Partners

Date:

Flagstone Secures £108 Million Equity Investment from Estancia Capital Partners:

  1. Investment Details:
    • UK fintech Flagstone has secured a £108 million equity investment from US private equity firm Estancia Capital Partners.
    • The investment comprises both primary and secondary investments.
  2. Utilization of Funds:
    • Flagstone plans to use the primary investment to consolidate its position in the UK’s £1.7 trillion savings market.
    • The funds will be allocated to enhance brand image, establish industry partnerships, and improve customer service.
  3. Secondary Investment Returns:
    • The secondary investment will provide substantial returns to Flagstone’s early backers.
  4. Stake and Regulatory Approvals:
    • Estancia Capital Partners will take a minority stake in Flagstone as part of the investment.
    • The transaction is expected to close in Q2 2024, subject to regulatory approvals.
  5. Board Additions:
    • As part of the investment, Takashi Moriuchi (Co-founder and Managing Director) and Keegan Mitchell (Vice President) from Estancia will join Flagstone’s board of directors.
    • Darrin Jeffries, COO and Managing Director of Estancia, will serve as a board observer.
  6. Flagstone Overview:
    • Flagstone, based in London and launched in 2015, offers access to savings accounts from over 30 partner banks for businesses and individuals.
    • The fintech claims over 600,000 customers with total assets under administration of £11 billion.
    • Flagstone has recently formed partnerships with Saga and SmartSave Bank.
  7. Strategic Opportunities:
    • Simon Merchant, Co-founder and CEO of Flagstone highlights that the capital raise provides the company with the necessary resources to capitalize on opportunities through organic growth, partnerships, and potential acquisitions.

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