Cloud-native core banking technology firm Thought Machine has secured an additional $42m to its Series B, bringing the round’s total value to a hefty $125m.
This fresh equity was raised in tandem with the FinTech’s arrival to the Asia Pacific market.
The new investment, which will officially close in early August, was led by global investment firm Eurazeo Growth. Eurazeo is no stranger to backing FinTech companies, with its portfolio consisting of startups including payroll and HR solution PayFit, and peer-to-peer lender Younited Credit.
Joining Eurazeo in Thought Machine’s Series B extension were British Patient Capital and SEB.
The company’s original Series B funding closed on $83m in March, with commitments coming from Draper Esprit, Lloyds Banking Group, IQ Capital, Backed, and Playfair Capital.
Thought Machine has opened its office in Singapore and will use a large portion of the fresh capital supporting the transformation of the APAC retail banking market through its technology.
Alongside this, capital is also earmarked to drive hiring staff members across APAC, US and Australia, and increasing product development. The FinTech has a new advanced payments solution due to be launched.
London-headquartered Thought Machine is a cloud-native cloud banking platform with the mission of empowering banks to deploy modern technology systems and pull away from legacy infrastructure.
The company was founded in 2014 by former Google engineer Paul Taylor, who helped to create its flagship product Vault. This is an API-driven banking solution which lets clients customise products and supply customers with personalised experiences.
Thought Machine managing director APAC Nick Wilde said, “The emergence of digital and neo banks is changing the APAC banking industry rapidly. This creates an urgent need for traditional banks to adopt solutions that provide innovation, agility and scalability.
“We help banks across APAC to move away from outdated legacy platforms, and the associated complexities and costs. With Vault, incumbent banks can implement core banking on their own terms and configure retail banking products easily and quickly, leveraging cloud native technologies.”
In just the first two quarters of 2020, the company has hired 100 new employees across three regions. It has also expanded its product capability to all major cloud providers and is set to make more client announcements in the coming months.
Thought Machine has also named B, Lloyds Banking Group, Atom bank and Standard Chartered Bank as new clients.
Eurazeo Growth managing director Zoé Fabian said, “Banks around the world are undergoing a fundamental digital transformation while moving to the cloud in response to increasing regulatory complexity, more sophisticated customer needs and growing competition from new entrants. Fintechs are maturing to position themselves meaningfully in the value chain.
“Thought Machine’s commercial traction is a testament to that paradigm shift. This is why we are so excited about partnering with Thought Machine.”
Copyright © 2020 FinTech Global