Agricultural challenger bank Oxbury has secured £25m in Tier 2 capital funding as it forecasts to reach breakeven by year end.
The latest capital increase was made by British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank.
It follows a £20 million funding round last month and brings total capital raised to £93 million since inception in January 2020.
The Tier 2 Capital facility from British Business Investments will enable Oxbury Bank to support additional lending of £250m to small and medium British businesses across the remainder of 2022 and through 2023.
Calling itself the UK's only AgTech bank, Oxbury has £650 million of lending completed or in progress in the 16 months since going live, with a target of £1 billion set for 2024.
Tim Coates, co-founder and chief customer officer at Oxbury Bank says: “Additional funding from British Business Investments will help accelerate Oxbury’s support for the rural economy and help farmers and food producers addresses the twin challenges of food security and the transition to low-carbon nature-friendly production.
“Oxbury’s relationship-led approach, enabled by our proprietary Oxbury Earth Agtech banking platform, is essential in serving the needs of the small and medium business that are the lifeblood of this crucial part of the British economy.”