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

U.K. FinTech startup Thought Machine raised $200 million in a Series C funding round at a valuation estimated in excess of $1 billion to bring legacy banks worldwide to the cloud, the company said in a press release emailed to PYMNTS.

The funding was led by Nyca Partners with participation by new investors J.P. Morgan Chase Strategic Investments, Standard Chartered Ventures and ING Ventures. Previous backer Lloyds Banking Group, who led Thought Machine’s Series A round, also participated in the round, along with British Patient Capital, Eurazeo, SEB, Molten Ventures (formerly Draper Esprit), Backed and IQ Capital.

“We set out to eradicate legacy technology from the industry and ensure that all banks deployed on Vault can succeed and deliver on their ambitions. These new funds will accelerate the delivery of Vault into banks around the world who wish to implement their future vision of financial services,” said Paul Taylor, CEO and founder of Thought Machine and a former Google engineer.

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Thought Machine is in the midst of an international expansion strategy and is continuing to provide its cloud native core banking technology to some of the most ambitious banks and FinTechs around the globe. The company moved to larger London headquarters last month and grew its workforce by 200 employees since last year.

Founded in 2014, the company plans to use the fresh infusion of capital to continue developing and expanding its Vault and its Universal Product Engine. Both solutions offer product development flexibility and configuration. Thought Machine will also use the new funding to grow its international reach, support its five global offices and target new markets.

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“Thought Machine is the leading technology among the new generation of cloud native core platforms, and as a result it has become the top choice for tier-one banks looking to upgrade their core architecture,” said Hans Morris, Managing Partner, Nyca Partners.

“These institutions tell us that Thought Machine’s engineering approach is unrivaled; Vault is highly configurable, flexible, scalable, and specifically designed for the complex environment and requirements of tier one banks. Investing in Thought Machine is an investment in the future of banking,” he added.