UK-based cloud banking software provider Thought Machine secured $83m in series B funding today from investors including banking group Lloyds.
Venture capital firm Draper Esprit led the round, which also featured VC funds Backed and Playfair Capital in addition to VC firm IQ Capital, which invested approximately $19m from its Growth Fund.
Thought Machine has created a cloud software platform called Vault which was intended to entirely replace legacy banking IT systems. Its customers include Lloyds as well as fellow financial services firms SEB, Standard Chartered and Atom Bank.
The company expanded into East Asia with the launch of a Singaporean subsidiary in 2019 and the series B proceeds will support its ongoing progress. It intends to launch in North America later this year, and Japan and Australia are also on the horizon.
Paul Taylor, Thought Machine’s founder and CEO, said: “Thought Machine’s revenues are very healthy, as we see cloud native banking become the most common desired target architecture for the world’s banks. The customer demand is huge, and this investment allows us to grow rapidly enough to serve all our target markets.
“As well as international expansion, we will put further investment into our core technology, ensuring that banks will always have the best possible cloud native platform, and allow them to keep up with technology breakthroughs in the future which bring agility, security, resilience and good economics.”
Lloyds had supplied $14.3m to lead Thought Machine’s $23.5m series A round in late 2018, investing together with IQ Capital, Backed and Playfair Capital, all of which were identified as existing investors by the company today.
