The UK fintech industry continues to grow strongly as Allica Bank achieved £29.9 million in doubled profits while Revolut reached £1 billion in 2024. The financial heritage of London combined with its leadership in Open Banking makes it a global fintech hub that hosts more than 185 fintech startups worth over £1 billion according to HSBC Innovation Banking. Volution which operates as a UK venture capital firm specializing in fintech and AI and SaaS announced a $100 million fund through its partnership with Japan’s SBI Investment Co. The company launched its $30 million debut fund after which numerous current limited partners decided to reinvest.
The fund seeks to support companies that already generate revenue between $5 million and $20 million while requiring growth capital. According to Managing Partner James Codling explained that venture capital funding for post-Series A companies has disappeared since the 2021-22 market correction thus creating an opportunity for businesses with solid product-market fit. The managing partner stressed Volution’s mission to address the funding gap as he observed that numerous funds face difficulties in securing capital while dealing with portfolio problems. The prior fund generated three successful exits and supported investments in Signal AI and Flagstone as well as Cognism and Zopa Bank.
SBI Investment’s Tomoyuki Nii emphasized that the UK leads both fintech and AI sectors because of its universities and regulatory system and entrepreneurial spirit. The investment fund supports the growth of UK-Japan economic relations. The ESG-driven “Carbon Carry” initiative of Volution promotes sustainable growth throughout its portfolio.
The fintech industry continues to thrive but UK tech companies encounter difficulties because Series A funding decreased by 44% in 2024 while Series B conversion rates decreased by more than 50% throughout five years. The fund from Volution seeks to propel UK fintech growth by providing support to scalable startups in their pursuit of global market success.
