One of the major players in the cloud-based technology space, Thought Machine, powering a new generation of financial services both for old and new banks, has announced $83 million funding. The company plans to invest the Series B funding in its platform and to grow its customer base further. The company currently focuses on the regions of Asia and Europe and includes large, legacy outfits like Lloyds, Standard Chartered, and Sweden SEB.
Cloud-based technology is fueling the massive demand from consumers by providing intuitive and varied services. Cloud tech has massively impacted fintech; a consumer accesses complete banking services with a few taps.
Thought Machine is even looking at expanding its financing, which will go toward boosting the startup’s activities in the US. The company will be opening the office in the US later this year and then move on toward more commercial deals. The funding is led by Draper Esprit, with more investment from Lloyds Banking Group, Playfair, Backed, and IQ Capital.
Thought Machine, started in 2014 and now employs close to 300 employees, hasn’t disclosed the valuation amount. Paul Taylor, CEO and Founder, noted that the market cap is currently increasing steadily. According to PitchBook estimates, during its last round of funding, the company was valued at about $143 million. Thus, this latest round of funding puts the company in the funding range between $220 million and $320 million.
Thought Machine’s primary technology and product is called VaultOS, a platform that contains a range of banking services. It includes current/checking accounts, loans, savings account, credit cards, and even mortgages. Thought Machine works on the B2B2C model for the businesses, the service is provisioned with smart contracts that allow the customers to personalize with varying the policies for each bank differently.
Banks demand their own tech, and the creation of complete new tech requires resources and time. The market competition in fintech space is pushing the businesses to pursue third-party solutions, so the next potential tech is busy rising.