UK fintech firm 10x Banking, founded by former Barclays CEO Antony Jenkins, has successfully secured £40 million in a new funding round. The investment was led by AshGrove Capital and comes as the company achieves a sustained period of profitability. This capital injection is earmarked to accelerate the company's global expansion and enhance its go-to-market capabilities, reinforcing its position as a key player in modernizing financial infrastructure.
A Milestone of Profitability and Growth
The funding announcement follows a remarkable year for 10x Banking, which recently became EBITDA-positive while significantly scaling its operations. The company has surpassed 10 million live accounts on its platform and onboarded more than ten new financial institutions within the last 12 months. These achievements underscore the increasing demand from banks seeking to replace outdated legacy systems with more agile, real-time technology.
Financially, the company has demonstrated robust health, reporting an increase in annual recurring revenue (ARR) of over 30%. This impressive growth, combined with disciplined cost management, highlights the commercial viability and market resonance of its core banking platform. These strong results reflect a growing client base that continues to expand its commitment to the 10x platform for its core operational needs.
Strategic Investment for Market Expansion
The £40 million investment will be strategically deployed to bolster 10x Banking's sales and go-to-market functions. This will enable the company to meet the growing international demand for its fourth-generation core banking platform. The infusion of capital from new investor AshGrove Capital provides a strong foundation for the company's next phase of strategic growth and client acquisition.
Antony Jenkins, founder and CEO of 10x Banking, stated that many financial institutions are constrained by infrastructure not built for modern digital banking. He emphasized that 10x was created to remove these barriers, allowing banks to launch products faster and compete more effectively. Jenkins noted that this investment is a strong endorsement of the progress the company has made in proving its value at a significant scale.
Investor Confidence in a Proven Platform
AshGrove Capital, which specializes in high-growth B2B software businesses, expressed strong confidence in 10x's technological capabilities. Phil Fretwell, co-founder of AshGrove, praised 10x for building one of the most compelling platforms in core banking today. He highlighted the difficulty of delivering a cloud-native platform at enterprise scale, a feat 10x has proven with clients like Westpac and Chase UK.
Fretwell believes the company is well-positioned to capitalize on powerful industry tailwinds as banks accelerate the replacement of legacy systems. The move towards more flexible, real-time, and AI-ready infrastructure presents a significant opportunity for 10x. AshGrove sees the company's proven platform and deep domain expertise as key drivers for its continued expansion in next-generation banking technology.
Nadir Guessoum, Chief Financial Officer at 10x Banking, welcomed the partnership with AshGrove, noting that the investment strengthens the company's balance sheet. He remarked that achieving EBITDA profitability while simultaneously growing ARR demonstrates significant commercial progress. This new capital reinforces confidence in the business's strategy and its ability to execute on its ambitious growth priorities.
In conclusion, this £40 million funding round marks a pivotal moment for 10x Banking, validating its innovative technology and sustainable business model. The investment from AshGrove Capital not only provides the resources for global expansion but also serves as a powerful endorsement of its market leadership. As the financial industry continues its digital transformation, 10x is poised to play an even greater role in defining the future of banking.