UK commercial finTech bank OakNorth valued at $5B

OakNorth, a United Kingdom-headquartered commercial fintech, has reached a US$5 billion valuation after a very important stakeholder Indiabulls Housing Finance sold some part of its 40% stake in the neobank. 

Some sources have reported that Goldman Sachs served as an advisor on the deal.

Indiabulls is a mortgage lender based out of Gurugram, Haryana, India, and is India’s second-largest housing finance company.

It sold 251 crores (approximately US$34 million) of its stake in the commercial bank, which it first bought in 2015, according to a regulatory filing.

During the close of 2020, Indiabulls parted with approximately 7.7 % of its share of OakNorth’s business following two transactions valued at US$145 million.

At the said time, the lender fell from a previous US$2.8 billion valuation (gained after a US$440 million funding round led by SoftBank Vision Fund and Clermont in February 2019) to about US$2 billion. 

Launched in 2013 by cofounders Rishi Khosla and Joel Perlman, OakNorth is a digital bank that specializes in providing loans and financing to small- to medium-sized businesses (SMBs) in the U.K.