UK fintech Clearscore on path to unicorn valuation with Invus deal

A technology company which offers consumers free access to their credit scores has been placed on course to join the ranks of British 'unicorns' with an investment valuing it at $700m (£503m).

Sky News has learnt that ClearScore, which has a global customer base of more than 14 million people, will announce on Friday that it has secured $200m (£144m) of new funding from Invus Opportunities, a US-based fund.

The capital will be used to expand ClearScore's workforce, product portfolio and customer base.

Co-founded by Justin Basini, Dan Cobley and Nigel Morris, the company earns a cut from credit products that it recommends to customers.

Unlike many of its early-stage peers, ClearScore is profitable.

It provides credit reports free of charge, unlike a number of rivals.

The investment from Invus Opportunities will allow existing ClearScore shareholders such as Blenheim Chalcot, the leading venture-builder, fintech investor QED and LeadEdge to sell part of their stakes in the company.

Blenheim Chalcot, which has backed companies such as Liberis, Modulr and Salary Finance, helped engineer the creation of ClearScore in 2015.

Benjamin Tsai of Invus Opportunities will join the ClearScore board following the deal, although Mr Morris will remain as chairman and Mr Basini as chief executive.

Mr Basini said the fundraising would help the fintech to "become an indispensable financial partner to millions more users around the world".

Based in London, ClearScore boasts more than 11 million UK users, and positions itself as assisting customers on a "journey to greater financial wellbeing".

It also operates in Australia and South Africa, and has three million customers outside its home market.

In 2018, the company agreed to sell itself to Experian, the FTSE-100 credit referencing group, for £275m.

The deal was scrapped the following year after the Competition and Markets Authority suggested that it would block it.