British fintech startup Chetwood Financial has reportedly hired bankers to find potential investors for a £100m funding round.

Chetwood is said to be in early talks with its existing backers over the potential funding round, The Sunday Telegraph reported.

The challenger bank has hired Rothschild family’s bankers to sound out the new investors.  However, no discussions have been formalised yet.

Chetwood may decide not to raise new cash, the report added citing sources.

Chetwood is backed by Elliott Advisors, an American investment management firm founded by billionaire activist investor Paul Singer.

Elliott is a majority shareholder in Chetwood with £100m of equity investment and another £100m in debt financing in the firm.

Elliott will be responsible for approving the new backers. The fundraise, if successful, will help the challenger bank fuel its growth.

Chetwood Financial was founded by former HSBC banker Andy Mielczarek.

The company provide loans to the underserved with poor credit histories. It also offers savings accounts at a fixed rate.

If Chetwood raises any new cash, it will use it to grow its lending business and for product launches.

If the decision to raise funds is made, it will be the latest among fintech firms that are tapping investors, according to The Sunday Telegraph.

Recently, GoCardless and Monzo have raised fresh funds, while Starling Bank is planning to raise £200m in capital.