Challenger bank, Recognise Bank, will benefit from £8.7 million in new capital following its latest funding round led by the City of London Group (CoLG), the bank’s parent company.
This means CoLG has so far raised almost £65 million in investment during its mission to create a new business bank for UK SMEs.
Recognise recently achieved £100 million in lending, little more than six months after receiving its full authorisation by the PRA in September 2021. Its personal savings accounts have topped the best-buy tables, attracting £95 million in deposits so far, followed by the launch of business savings accounts in April.
The new capital will be used to support continued business lending, as well as the creation of a new team to further accelerate the Bank’s digital innovation, including the creation of new products and fresh revenue streams. A number of high calibre appointments to the team have already been made and the first development projects will be announced soon.
The latest investment comes from two of CoLG’s existing shareholders, PV27, the family office of real estate entrepreneur and digital pioneer, Ruth Parasol, and Max Barney Investment Limited (MBIL), the London based property firm. PV27 and MBIL are exercising warrants received during the last fund raise in August 2021.
