SoftBank invests in UK fintech OakNorth, giving it $2.8B valuation

British digital bank OakNorth said Friday it secured $440 million in an investment round led by Japan’s .

The firm, which lends to small-to-medium enterprises through its digital platform, said it had raised $390 million from SoftBank’s $100 billion Vision Fund, with the remaining capital coming from Clermont.

The deal gives the three-year-old firm an eye-watering $2.8 billion post-money valuation, making it Europe’s most valuable private fintech group.

OakNorth’s announcements confirmed reports overnight that said the company had received a new cash injection from the Japanese tech giant.

Speculation over the funding began late last year after a Times of London report said that SoftBank was in talks with OakNorth and fellow British fintech firm Revolut about investing in both businesses via its technology investment fund.

“We decided that, with (SoftBank’s) capital, and with their network, that we would be able to significantly expand to growth plans we have for the business,” Rishi Khosla, co-founder and chief executive of OakNorth, told CNBC over the phone.

“Aligned with our mission to support the financing needs of growth SMEs across the globe, we thought SoftBank… would be a really good investor to have alongside our existing strong investors.”