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UK FinTech Starter TrueLayer Raises $ 70 Million

Francesco Simoneschi, CEO and co-founder of TrueLayer, a UK fintech startup.

TrueLayer

London — UK financial technology starter TrueLayer says it has raised $ 70 million in new funding, emphasizing investors’ continued desire for fast-growing fintech companies. ..

TrueLayer allows fintech apps such as Revolut and Freetrade to connect to a customer’s bank account using a technology called an API or application programming interface. This means that users of these apps can make payments from banks and view balances and transactions from various accounts.

According to the company, the latest investment round was led by Addition, a venture capital firm founded by former Tiger Global partner Lee Fixel. Existing investors Anthemis Group, Connect Ventures, Euro Capital, Northzone and Temasek of Singapore have also invested.

In an interview, TrueLayer CEO and co-founder Francesco Simoneschi said the company has decided to raise more cash against the backdrop of strong growth in 2020. Their finances.

“We ended 2020 in a very positive way,” Simoneschi told CNBC. “We were growing incredibly,” he said, adding that the company’s payments surged 600-fold.

TrueLayer refused to share the financial or valuation.A company that counts the major Internet companies in China Tencent As a shareholder, we have raised $ 142 million to date.

TrueLayer said it would first build its presence in Europe and use fresh cash to expand its services internationally before targeting its expansion in Australia. We are also considering whether to launch further in Brazil.

Open banking

The news arrives the day after the Silicon Valley company Plaid. Compete with True Layer in Europe — Announced that he had Raised $ 425 Million With new investment, the company was valued at $ 13.4 billion.Plaid initially agreed to be acquired by visa Last year it was $ 5.3 billion, but after the US government expressed concern about antitrust law, it closed the deal.

Plaid and TrueLayer are part of a new financial movement called “open banking.” It is intended to expose valuable banking data and payment services to fintech companies and other authorized third parties with the consent of their customers.Includes other players in the space Swedish tink And British buds..They are using New technology-friendly rules Known as PSD2 in the United Kingdom and the European Union.

TrueLayer and several other companies are now Visa and master CardWith a much lower fee, by allowing the FinTech app to initiate bank transfers on your behalf.GoCardless, a fintech platform that handles direct debit payments Development of open banking technology For transactions.

“Open banking could be a true competitor to traditional card networks,” Simoneski said. “The question is whether the card company can accept or resist this change.”

It is worth noting that visas are still plaid investors, Like TrueLayerThis means that you can benefit from the rise of open banking services in the long run.Meanwhile, last year’s Mastercard I bought Finicity, Another player in the space.

competition

UK FinTech Starter TrueLayer Raises $ 70 Million

Source link UK FinTech Starter TrueLayer Raises $ 70 Million

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