UK-based fintech firm Railsbank is reportedly working to raise around $100m, a move that will increase its valuation at more than $1bn providing it with ‘unicorn’ status.

The fintech has selected US-based investment bank FT Partners to manage the funding round, Sky News reported citing sources familiar with the development.

The latest funding round is expected to close in the coming months.

They added that the funding would make Railsbank the UK’s latest tech ‘unicorn’ at a time when sell-off in the public market has severely impacted the valuation of the world’s leading technology giants. 

However, Railsbank and FT Partners declined to comment on the report.

Founded in 2016, Railsbank provides open banking technology and APIs to enable clients to develop financial services products.

In July 2021, Railsbank raised $70m in an Anthos Capital-led round to fuel international growth. Several other investors such as Central Capital, Cohen and Company and Outrun Ventures along with existing backers also participated in the fundraising.

At that time, Railsbank CEO and co-founder Nigel Verdon said: “We are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes.”

Most recently, the fintech’s Australian arm Railspay formed a partnership with Parpera to offer banking-as-a-service (BaaS) products.