Modulr has secured £18.9m in growth capital to further develop its platform and expand into new products and markets.

The funding round was led by growth capital firm Highland Europe, with participation from existing investors including Frog Capital and Blenheim Chalcot.

The new investment takes Modulr’s total funding to £53.3 million and delivers on the FinTech’s commitment to match the £10 million it was awarded from the Capability and Innovation Fund last August.

The new investment will be used to develop its product and service offering - with the introduction of card issuing and deeper European payment capabilities - and enable the company to expand further into new markets.

Modulr opened its first non-UK office in Dublin in 2019, to begin expansion into the European market. In less than four years, the company has scaled to process more than £25 billion worth of payments through its partner clients, including Sage, Liberis, Salary Finance and iwoca.

Chief executive Myles Stephenson commented: “In the past year, we’ve experienced strong growth, we’ve gained direct access to key payments infrastructure and have positioned ourselves as a trusted payments partner for some of the most ambitious companies in the UK and beyond.

“With Highland Europe, we have a partner which can help to further fuel this momentum, investing in our infrastructure and product suite to ensure we can provide our customers with a reliable service that’s easy to access and simple to use."

Laurence Garrett, a partner at Highland Europe, added: “No-one can deny the opportunity of the business payments market, some five times the size of the opportunity presented by consumer payments, and Modulr is the leading platform in this space.

"Myles and the team have firmly established the FinTech as the go-to provider of payments services for ambitious businesses, and we look forward to fuelling this growth further.”

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