Temasek Leads $160M Series D for Thought Machine’s Expansion

Cloud banking technology startup Thought Machine closed a $160 million Series D funding round led by Temasek that gives the firm a post-money valuation of $2.7 billion, twice its value at the end of last year.

Also participating in the funding were Intesa Sanpaolo, Morgan Stanley, Eurazeo, ING, J.P. Morgan Chase, Lloyds Banking Group, and SEB.

The London startup was founded in 2014 by CEO Paul Taylor and raised $200 million led by NYCA Partners in November 2021 at a $1 billion valuation. Thought Machine has raised more than $500 million in total funding to date.

See also: UK FinTech Thought Machine Raises $200M at $1B Valuation

“This new round of funding bringing Temasek, Morgan Stanley, and Intesa Sanpaolo into the business is our statement of intent: we intend to become the leader in core banking technology, and are being deployed by the biggest, most successful banks around the world,” Taylor said in a press release emailed to PYMNTS on Tuesday (May 17).

Taylor added that the company will use the fresh capital to boost its plans for growing its footprint and reaching more potential clients worldwide while also building out the capabilities of its platform and the other products its offers.

Thought Machine operates in New York, Singapore, and Australia with plans to further expand across the Asia Pacific into Vietnam, Thailand, Indonesia, and the Philippines. The company recently opened an office in Sydney to grow its Aussie footprint, and plans are on the table for a Miami office to service Latin America.

The company is also earmarking some of the new funding to continue investing in its technology, with an eye on expanding the capabilities of its core banking platform and developing innovative new products, according to the release.

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Early backer Lloyds Banking Group, also an investor in this round, is extending its license agreement with Thought Machine through 2029 as part of its continuing technology modernization program.

Thought Machine recently enhanced its executive team with the appointments of former Bank of America and Finastra finance leader Arnaud Attamian as chief financial officer, and former SAP and Box sales leader Dana Barisano as chief revenue officer.