Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

A fintech helping banks enter the cloud hits $1 billion valuation in JPMorgan-backed investment

by
November 29, 2021
in Trading News
0
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

The U.S. Carries $33 Trillion in Debt. How It Stacks Up to the World.

ARK Invest’s Cathie Wood Says Nvidia Is ‘Really Expensive’ And ‘Very Obvious’ — Here Are 2 Less Obvious AI Plays She’s Betting On

JPMorgan Chase & Co. signage is illuminated at night at a bank branch in Chicago, Illinois.

Christopher Dilts | Bloomberg | Getty Images

LONDON — British fintech start-up Thought Machine has raised $200 million in a fresh round of funding that lifts its valuation above the coveted $1 billion mark.

The cash injection was led by Nyca Partners, a U.S.-based venture capital firm that has previously bet on companies including Affirm and Revolut, with additional backing coming from major lenders including JPMorgan Chase, Standard Chartered and ING.

Existing investors Lloyds Banking Group, Eurazeo, and SEB also increased their holdings.

Founded in 2014 by former Google engineer Paul Taylor, Thought Machine says its software helps big banks move away from legacy IT infrastructure to a modern, cloud-based platform.

The firm counts many of its big-name banking backers as clients. In the U.S., for example, it has a deal with JPMorgan to replace the company’s core retail banking system. In Britain, Thought Machine has a similar deal with Lloyds.

Taylor said his firm’s mission “isn’t a small one,” and that it requires substantial investment to achieve its goals. Though Thought Machine is now making “tens of millions” of pounds in revenue, it isn’t yet profitable, he added. The company makes its income from multi-year software subscription deals.

“It’s a fantastic time to be an entrepreneur,” Taylor told CNBC in an interview. “There’s more funding available than ever.”

“It means that, here in the U.K., we can actually build a world-class company, rather than always be looking over our shoulder at Silicon Valley.”

Thought Machine plans to use the fresh cash to expand internationally. The firm opened an office in New York earlier this year, with about 20 employees leading its U.S. expansion.

Thought Machine is also setting up shop in new Asian markets like Malaysia and Japan. Around half of Thought Machine’s business now comes from Asia, the firm’s CEO said. It has a headcount of around 500 people globally.

The company competes with the likes of Mambu, which was valued at over $2 billion in its most recent funding round, as well as 10x Future Technologies, the fintech venture of former Barclays CEO Antony Jenkins. 10x is also backed by JPMorgan.

Thought Machine is one of several new business-focused fintechs looking to partner with, rather than disrupt, the world’s banking behemoths. Banks are facing increasing competition from a slew of new digital entrants like Chime, Revolut and N26.

So far, these challengers have yet to make a significant dent in the incumbents’ share of the market. But they are gaining significant traction with consumers and plenty of funding from venture capitalists willing to subsidize substantial losses in favor of rapid growth.

Banks aren’t sitting quietly. Many have attempted to roll out their own standalone digital banking products, to varying degrees of success.

JPMorgan recently launched a digital-only version of its Chase brand in the U.K., while Credit Suisse rolled out a new banking app called CSX in Switzerland.

However, several lenders have stumbled in their digital transformation journey. RBS, for example, shut down its Bo online banking brand last year.

“Our goal is not to pick winners in the space,” Taylor said. “Our goal is that, if anybody wants to launch a cloud-based bank, we’re available and they can use our platform.”

Asked whether an initial public offering was on the horizon, Thought Machine’s founder said it was likely to go public in about three years.

ShareTweetPin

Related Posts

The U.S. Carries $33 Trillion in Debt. How It Stacks Up to the World.

by
September 29, 2023
0

ARK Invest’s Cathie Wood Says Nvidia Is ‘Really Expensive’ And ‘Very Obvious’ — Here Are 2 Less Obvious AI Plays She’s Betting On

by
September 29, 2023
0

Nike soars on first quarter earnings, confidence in Chinese consumer regardless of ‘macroeconomic outlook’

by
September 29, 2023
0

Friday: Personal Income and Outlays

by
September 29, 2023
0

At Age 99, Charlie Munger Has These Words Of Wisdom For Investors: ‘Sometimes It’s A Boom. Sometimes It’s A Bust.’ Here’s How To Spot The ‘Boom’.

by
September 28, 2023
0

Next Post

Omicron Covid variant poses 'very high' global risk and is likely to spread, WHO warns

Dow futures rebound by 180 points after Friday's big sell-off as investors reassess omicron risk

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Ford partners with GlobalFoundries to increase chip supplies

    0 shares
    Share 0 Tweet 0
  • CEOs across the market, economy agree on one big 2022 prediction: More volatility

    0 shares
    Share 0 Tweet 0
  • Inflation is sticking around – and Biden will likely have to wait it out like the rest of us

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com