Banking Technology Provider ThoughtMachine Achieves ‘Unicorn’ Status With New Funding | Economic news
A banking technology provider backed by Britain’s biggest lender will add its name to the list of UK tech ‘unicorns’ in the coming weeks when it completes a £ 150million fundraiser.
Sky News has learned that ThoughtMachine, which was established in 2014, is close to closing a deal that will further double the amount of capital injected into the company since its inception.
Sources said on Wednesday that the company has reached a deal with Nyca Partners, a New York-based fund that is among its existing investors, to lead its latest round of funding.
In total, ThoughtMachine is likely to raise around £ 150million for a valuation of more than $ 1 billion on a pre and post-currency basis, the sources say.
The deal, which will be publicly announced later this fall, will solidify ThoughtMachine’s status among Britain’s most valuable fintech companies – a sector that has come under increasing political scrutiny in recent months as ministers seek ways to stimulate the growth of the sector.
Since the start of the year, Revolut, the digital bank, has become the most precious private company in the UK, raising funds at a valuation of $ 33 billion.
Others including Wise, the money transfer service, have been publicly traded in an attempt to take advantage of the growing investor appetite for the sector.
ThoughtMachine provides core banking services through cloud-based platforms including Standard Chartered, the emerging market focused lender, and Atom Bank, the digital bank.
Lloyds Banking Group has been a shareholder in the company since last year, after signing an agreement to become a ThoughtMachine client in 2019.
Banking technology providers such as ThoughtMachine and their competitors Temenos and 10x Future Technology have become increasingly valuable as lenders attempt to improve their technology systems to meet the growing demand for online banking.
The growing use of cloud-based software is also allowing banks to cut thousands of jobs in previously labor-intensive administrative functions.
ThoughtMachine has already raised £ 100million in external capital and employs more than 500 people in London, Melbourne, New York, Singapore and Sydney.
Its other investors are Draper Esprit, the London-listed venture capital firm, Eurazeo, IQ Capital and Playfair Capital.
The company is headed by Paul Taylor, its founder, whose participation should be worth a very large sum of money after the last round.
A spokesperson for ThoughtMachine said, “We can confirm that the company is raising funds and will close a significant amount, showing our investors’ confidence in the company and the impact of Vault, our banking platform. native base in the cloud.
“We are delighted with the huge interest from new and existing investors in our business.”
The company declined to comment on details of the new funding round.