Thought Machine reaches $ 1 billion in JP Morgan-backed funding

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

Christopher Diltz | Bloomberg | Getty Images

London — UK fintech startup Thought Machine has raised $ 200 million in a new round of funding, surpassing the coveted $ 1 billion valuation.

Cash injection was led by Nyca Partners, a US-based venture capital firm that previously bet on the following companies: agree with And Revolut, additional support from major lenders, including: JPMorgan Chase, Standard chartered When NS..

Existing investor Lloyds Banking Group, Eurazeo, When SEB We also increased their holdings.

Thought Machine was founded in 2014 by former Google engineer Paul Taylor. The software says it helps big banks move from legacy IT infrastructure to the latest cloud-based platforms.

The company counts many of its well-known bank backers as customers. For example, in the United States, we have a contract with JP Morgan to replace our core retail banking system. In the UK, Thought Machine has a similar deal to Lloyds.

Taylor said his company’s mission was “not a small one” and that it would require a large investment to reach that goal. Thought Machine is currently making “tens of millions of pounds”, but he added that it hasn’t made a profit yet. The company earns from multi-year software subscription contracts.

“It’s a great time to be an entrepreneur,” Taylor told CNBC in an interview. “More money is available than ever before.”

“That means you can actually build it here in the UK. Rather than always looking over Silicon Valley, it’s a world-class company. “

Thought Machine plans to expand internationally with fresh cash. The company opened an office in New York earlier this year and has approximately 20 employees leading the way in expanding its business in the United States.

Thought Machine also has stores in new Asian markets such as Malaysia and Japan. About half of Thought Machine’s business is now from Asia, the company’s CEO said. We have about 500 employees worldwide.

The company competes with something like MambuIs worth more than $ 2 billion in the most recent funding round, as is 10x Future Technologies, a fintech venture from Barclays former CEO Antony Jenkins. 10 times Also supported by JP Morgan..

Thought Machine is one of the new business-focused fintechs that aims to partner with the global banking giants rather than confuse them. Banks are facing intensifying competition with a number of new digital entrants such as Chime, Revolut and N26.

So far, these challengers haven’t hit the market share of existing companies significantly.But they are gaining a great deal of traction with consumers Lots of money From venture capitalists who are willing to support rapid growth and subsidize significant losses.

The bank is not sitting quietly. Many have tried to deploy their own stand-alone digital banking products to achieve varying degrees of success.

JP Morgan Recently released While Credit Suisse is launching a new banking app called CSX in Switzerland, it’s a digital-only version of the Chase brand in the UK.

However, some lenders have come across a journey of digital transformation.For example, RBS Shut down Bo online banking brand last year.

“Our goal is not to choose a winner in space,” Taylor said. “Our goal is that if someone wants to set up a cloud-based bank, we can make it available and they can use our platform.”

The founder of Thought Machine was asked if an initial public offering was imminent and said it was likely to go public within about three years.

Thought Machine reaches $ 1 billion in JP Morgan-backed funding

Source link Thought Machine reaches $ 1 billion in JP Morgan-backed funding

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