Tandem Bank, the UK challenger which sparked reports of its funding nearly a year ago, has finally landed its investment round of £60 million and intends to buy a green lender that helps consumers buy solar panels.
The funding round was led by Qatar Investment Authority (QIA), Reuters reported citing sources familiar with the matter. The QIA also owns stakes in other banking groups such as Barclays, Sainsbury’s, Canary Wharf, and Shard.
Tandem provides savings accounts and credit cards to over 800,000 customers in the UK. Tandem competes with other digital banks in the UK such as Starling and Monzo, intends to use the funding to gain a larger market share by offering user-friendly digital services.
In April 2019, the bank was tipped to be the next unicorn by the Financial Times, which reported Tandem was in the process of putting together a round that would top the £80 million it raised in 2018.
But since then, the anticipated £100 million raise seems to have proved a challenge for the bank, pushing its expected unicorn status further over the horizon.
Tandem has yet to make a formal announcement, but a spokesman confirmed: “Tandem Bank can confirm that it has secured a significant fundraise, subject to regulatory approvals. Full details of the transaction will be available in due course.”