Thought Machine, a start-up founded in 2014 (Xoogler) that sells cloud-based b2b banking services, closed a $ 200 million Series C cycle and announced that it had achieved unicorn status (c that is, passing a valuation of $ 1 billion).
The new funding follows an $ 83 million Series B round last year – when it described its market cap as “growing healthily.”
Series C is led by Nyca Partners, based in New York and San Francisco, along with other new investors including ING Ventures, JPMorgan Chase Strategic Investments and Standard Chartered Ventures, the investment arms of some of its global banking clients. leading.
Lloyds Banking Group, which led the Thought Machine Series A, also participated in the latest increase.
Other existing investors who are also returning for Series C are British Patient Capital, Eurazeo, SEB, Molten Ventures (formerly Draper Esprit), Backed and IQ Capital.
Thought Machine describes itself as a ‘cloud-native core banking technology’ company – and sells cloud-based banking infrastructure to old and new banks as they seek to deliver services to their customers through the cloud , moving away from the mainframe, away from legacy banking technology (in the case of old-school banks) or offering cloud-based services up front in the case of challenger banks and fintech startups.
The startup’s C Series follows a period of accelerated growth, with Thought Machine noting that it has added more than 200 employees since 2020 and is moving to a larger London headquarters to accommodate its increased workforce.
The new funding will be used to continue the development and expansion of its flagship SaaS product Vault – a cloud native platform on which its b2b customers rely to provide a range of retail banking services, ranging from checking accounts, accounts savings, loans and mortgage credit cards.
Vault is built around APIs, using a microservices architecture and smart contract system – hosted on a cloud service of customer choice (such as Google Cloud Platform, Microsoft Azure, Amazon Web Services and IBM Cloud are supported) – with touted benefits including a more flexible and scalable infrastructure, as well as lower operating costs compared to maintaining existing technology.
Commenting on the funding in a statement, Paul Taylor, CEO and Founder of Thought Machine, said, “We are delighted to have won the support of our new and existing investors as we continue to move the world’s leading banks to the cloud. . We strive to eradicate legacy technologies from the industry and ensure that all banks deployed on Vault can be successful and achieve their ambitions. These new funds will accelerate the delivery of Vault to banks around the world looking to implement their future vision of financial services. “
In a further supporting statement, Hans Morris, Managing Partner at Nyca Partners, added: “Thought Machine is the cutting edge technology among the next generation of cloud-native core platforms and as a result it has become the first choice of leading banks looking to upgrade. their basic architecture. These institutions tell us that Thought Machine’s engineering approach is unmatched; Vault is highly configurable, flexible, scalable, and specifically designed for the complex environment and requirements of tier one banks. Investing in the thinking machine is an investment in the future of banking and we are very motivated to work with them as they build a new standard for core banking technology.