Bank of London raised 拢42 million from investors last month before HMRC issued a winding-up petition against the company over unpaid taxes.
The technology-led clearing bank, which is now said to have settled the debt – of which directors claimed they were 鈥渦naware鈥� – met with the Bank of England to discuss its governance practices over the weekend, according to the Financial Times.
The firm鈥檚 founder Anthony Watson (pictured) stepped down as CEO last week for an advisory role and was replaced by Stephen Bell, former chief risk & compliance officer.
The funding round in August was led by Luxembourg-based Mangrove Capital Partners. Mangrove CEO Mark Tluszcz has sat on the board of the company since 2018.
In a press release which did not mention the tax situation, HMRC or Bank of England meeting, Bank of London said it was celebrating two milestones: customer deposits passed 拢500m in August, having more than doubled since the start of the year, while it has now onboarded its 100th institutional client. It has more than 4,500 clients in total.
鈥淭he Bank of London鈥檚 ability to close an over-subscribed 拢42 million funding round speaks to the confidence investors have in its leadership and unique model,鈥� said Tluszcz. 鈥淭he bank is well-positioned to redefine the future of financial services and we are more than happy to support it.鈥�
Bank of London raised 拢33m in an extension to its Series C round early last year, which at the time took the company’s total capital raised to $160m. The bank reported losses of 拢12.7m in 2022.
鈥淥ur banking model is built on security and simplicity,鈥� said Bell. 鈥淏y holding deposits at the Bank of England, businesses have full confidence in their funds being available at all times.
鈥淥ur success in completing this 拢42 million funding round underscores investor belief and confidence in our vision, and I am excited to take over leadership of The Bank of London as it continues to grow.鈥�
Bank of England made a bid to rescue the UK arm of the collapsed Silicon Valley Bank last year, losing out to HSBC.