The funding will be used by Thought Machine to strengthen its presence in cloud-native banking services
Image: Thought Machine founder and CEO Paul Taylor. (Credit: Thought Machine.)
Thought Machine, a cloud-native banking technology firm, has raised $83m in series B funding round led by European investor Draper Esprit, to strengthen its core engineering capability and to expand its presence in Asia Pacific.
Draper Esprit is a major venture capital firm that invests in and developing high growth digital technology businesses.
Other existing investors who participated in this funding round include Lloyds Banking Group, IQ Capital, Backed and Playfair Capital. IQ Capital contributed ₤15m ($19.7m) from its new scale up fund.
Thought Machine was founded in 2014 by former Google engineer Paul Taylor, to transform banking through a cloud-native system. The firm has built a core banking solution entirely in the cloud.
The company’s solution Vault enables established and challenger banks to compete in a cloud-native era, by offering high levels of scalability, resilience and security.
Some of Thought Machine’s clients include Lloyds Banking Group, Standard Chartered, SEB and Atom Bank.
Draper Esprit investment director Vinoth Jayakumar said: “We are delighted to be partnering with Thought Machine in this phase of their growth.
“Our investments in Revolut and N26 demonstrate how banking is undergoing a once in a generation transformation in the technology it uses and the benefit it confers to the customers of the bank. We continue to invest in our thesis of the technology layer that forms the backbone of banking.”
Thought Machine plans to launch in Australia and Japan
Headquartered in London, the banking technology start-up claims to have grown rapidly, expanding its team from 50 in 2018 to over 300 currently.
Last year, Thought Machine expanded into Asia Pacific by opening an office in Singapore, covering sales and marketing and professional services function to oversee the deployment of Vault at local banks.
The company is also planning to enter Australian and Japanese markets. It will launch in North America later in 2020.