A challenger bank is set to create a raft of new jobs in Newcastle after securing a £15m funding round.
London-based Pockit, which provides bank accounts for people with poor credit scores, opened a new base last year in the HiveTree Newcastle development located on the Bigg Market, generating around 30 jobs.
Now the fintech firm launched in 2014 is set to create another 17 jobs over the next 12 months as it looks to invest in its Newcastle operation and deliver ambitious expansion plans.
The funding will also support the platform as it continues to roll out a number of product enhancements and developments.
The Series B capital has been secured from a number of new and existing investors, including £1m through the North East Development Fund, £1.3m via private investors, Crowdcube and the Government’s Future Fund and £1m from Maven Capital Partners, one of the 海角视频’s most active SME finance providers.
To date Pockit – which has 500,000-plus customers - has raised £27m in funding and is backed by established investors who has supported the growth of among others Wheely, Spotify, Funding Circle, Bolt and Houst.
The business was drawn to Newcastle because of its access to a highly skilled talent pool and the area’s growing reputation as a centre for tech firms.
Pockit founder Virraj Jatania said: “We are excited about our expansion into Newcastle, which is one of the most vibrant cities in the United Kingdom. We have been impressed with the quality of talent in the region and the way in which we have been welcomed into the local business ecosystem.
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“We are looking forward to our partnership with Maven, who are one of the leading investors in the United Kingdom and will be a strong partner in the years to come.”
David Nixon, investment manager at Maven, added: “Expanding its London operation and opening a Newcastle base allows Pockit to join the city’s thriving digital cluster and benefit from the local fintech talent we have here.
“The platform supports a growing market unable to access traditional high street banking products. We’re excited to back Virraj and the team at such a pivitol point in the company’s growth journey and are looking forward to working with the business as they execute their expansion plans.”
Pockit provides accessible current accounts and a debit card for users via an app. The Pockit app and account are designed to act in the same way as a high street bank account, aiming to increase financial inclusion for individuals who have poor access to regular banking products.
The mobile-first fintech aims to make money simple with specifically tailored services, such as helping customers to build their credit score through its Pockit LOQBOX product or enabling the sending of money internationally through its remittance functionality, which is powered by Transferwise.
Jason Hobbs, chief executive of the North East Fund, said: “It’s great to see a FinTech business improving the experience for vulnerable customers and promoting financial inclusion. We are delighted Maven and the North East Fund has supported the business as it scales its operation within the region.
“More and more digital businesses are opening a North East base and the region is fast becoming a prime area for tech businesses to locate because of our growing and collaborative sector and impressive workforce and the availability of venture funding through programmes such as The North East Fund.
“Although 2020 was extremely difficult, British entrepreneurship has a deserved reputation for resilience and innovation and we are committed to supporting ambitious small businesses.”