# Modulr Financial Model API-first embedded payments platform enabling enterprises and FinTechs to build, scale, and monetise business money flows without holding their own banking licence. - Canonical: https://finamodel.com/startups/modulr - Excel download: https://finamodel.com/startup-models/modulr.xlsx - Category: Fintech - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $108M - Founded: 2022 - Geography: UK primary; European expansion underway (deck references UK and Europe as SAM). - Customer: B2B ## About the company Modulr is an API-first embedded payments platform for enterprises and fintechs that need to build and monetise business money flows without holding their own banking licence. It supports account-to-account payments, direct debit, card issuing, and open-banking use cases. The company’s revenue is recurring and transaction-led, with annualised transaction volume serving as the central operating metric. Deep API integration creates high switching costs and gives customer expansion a meaningful role in growth. The model should forecast customers by cohort, transaction volume by payment type, revenue yield per transaction, and net retention. Payment-processing and scheme costs must be deducted from volume-driven revenue, while new integrations and existing-customer expansion explain the path to operating leverage. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Platform provides business accounts, A2A payments, card issuing, direct debit, and open banking - all initiable via a single API call. - Positioned as a "modern FinOps hub": customers embed and monetise payments rather than leaving them to their bank, without needing to be regulated themselves. - Key outcomes cited: lower call-centre volumes, elimination of manual-process errors, stickier customers, faster Faster Payments go-live (8 weeks vs. 1 year). - Does not compete with payment acquirers (PayPal, Worldpay, Adyen, Square, Klarna); focus is on account-to-account and embedded money flows. - Regulatory moat: direct Bank of England connection; active in NCA/PEFF, UK Finance Fraud Working Group, Electronic Money Association, and The Payments Association. ## Market - Global TAM: $2,122bn payments revenue - European TAM: $307bn - European SAM (2025 target, existing verticals in UK + Europe): ~$50bn - Market tailwinds cited: digital transformation, demand for real-time data, open banking regulatory change. ## Revenue model - Revenue driven by recurring transaction fees - described as "recurring transaction revenue with high net retention rates." - Transaction volume is the primary top-line driver; metric shown is Annualised Transaction Volume (m). - Payment types monetised: A2A, Faster Payments, direct debit, card issuing, open banking. - Channel: direct API integration into enterprise and FinTech customers' platforms. ## Traction & metrics - +105% year-on-year growth in annualised transaction revenue - Annualised Transaction Volume chart shows consistent growth from Q3 2016 through Q4 2021 (22 quarters), with an acceleration in 2020–2021. Absolute volume figures are not labelled on the y-axis - no specific numbers can be read off the chart. - Customers include Revolut, Sage, HyperJar, iwoca, Wagestream, Salary Finance, Lending Stream, Paxport, Bubble, Ilisys, RIS, Accenture Enterprise. - Retention rate: described qualitatively as "high net retention rates." ## Unit economics - Net revenue retention: described as "high" - no number given. ## Competition / moat - Legacy banks: slow, underinvested, limited digital capability. - Acquirers (Worldpay, Adyen, PayPal, etc.): explicitly excluded from competitive frame - different product surface. - Moat sources: 1. Regulatory excellence - direct Bank of England settlement account, EMI licence; positions Modulr as the only embedded payments option that enterprise customers will accept. 2. Network effects from scale - high-volume enterprise customers attract more enterprise customers. 3. API-first multi-rail platform - breadth of payment types in a single integration creates switching costs. ## Team & funding ask / use of funds - Use of funds: Deck references investment in Go To Market and Product as accelerants. --- ## Recommended financial model - **Archetype + why:** Transaction-volume-based payments infrastructure model (usage-based / volume-driven SaaS-adjacent). Revenue = annualised transaction volume × revenue yield per transaction. High net retention with a B2B API-embedded install base means the model should also track a customer cohort / NRR layer. A 3-statement model is secondary; the primary output is a transaction volume → revenue → EBITDA bridge. - **Forecast horizon & granularity:** 5 years (2022–2026), quarterly for years 1–2, annual thereafter. Deck is May 2022 so base year is FY2021 actuals. - **Key drivers & assumptions:** | Driver | Value / Source | | -- | -- | | YoY transaction volume growth rate | +105% YoY stated for annualised transaction revenue; | | Net revenue retention (NRR) | Described as "high" | | European expansion contribution | ~$50bn SAM by 2025; | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** Volume growth steps down from 105% → 60% → 40% → 25% → 15%; NRR 120%; take rate constant. - **Bull:** Growth sustains at 80% for 3 years (European expansion accelerates); NRR 130%; take rate improves as product mix shifts to higher-margin card issuing. - **Bear:** Growth halves to ~50% in year 1 (macro / customer churn); NRR drops to 105%; European launch delayed 12 months. - Primary flex variables: transaction volume growth rate, NRR, take rate, European ramp timing. - **Required sheets / outputs:** 1. Assumptions dashboard (all drivers in one place, scenario toggle) 2. Transaction volume model (quarterly cohorts, new vs. existing volume) 3. Revenue bridge (volume × yield, by payment type if data available) 4. P&L (gross profit, EBITDA, net income) 5. Cash flow & runway (burn rate, funding milestone) 6. Market-share waterfall ($307bn European TAM → SAM → Modulr revenue) 7. KPI summary (annualised transaction volume, NRR, gross margin %, EBITDA margin %) ## Frequently asked questions ### Is the Modulr financial model free? Yes. The Modulr model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.