Agricultural challenger bank Oxbury has acquired Naqoda, the provider of the bank's cloud-based core banking platform, with the aim of becoming a software-as-a-service provider for the wider fintech and banking industry.
The acquisition of low code development outfit Naqoda marks the completion of the full build-out of Oxbury’s proprietary fintech platform, Oxbury Earth.
The transaction provides Oxbury with full optionality on development of its future fintech platform and the ability to consider future strategic options for offering Software-as-a-Service (SaaS) capabilities in the wider fintech and banking market both in the UK and globally.
James Farrar, chief executive officer & co-founder at Oxbury Bank, says of the deal: "This not only brings our nimble IT platform fully under the Oxbury umbrella, but also creates additional revenue potential for the business, as other organisations in other countries realise the benefits of having a robust, cloud native, API centric and data-driven infrastructure at the heart of their operations."
In its first full year of operations, the bank has lent over £150 million to British farmers and made a further £250m+ in committed lending offers which are currently in the process of completion. As a result, Oxbury expects to breakeven by the start of Q4 2022 and has set a target to lend £1 billion across the farming and food supply chain by 2024.
The first year performance has been capped off by a further capital rise of £31 million, bringing total capital raised to date to £48 million.