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Thought Machine cements its fintech unicorn status
London-based Thought Machine, a fintech providing core banking services through cloud-based platforms, hit a $1 billion valuation, becoming a unicorn, in a Nyca Partners-led investment.
Founded in 2014 by Paul Taylor, at one time Google’s head of text-to-speech system, Though Machine announced on Monday (Noc. 29) the close of its series C funding round, bringing $200m into the business.
The investment round was led by the US-based venture capital firm but witnessed participation from existing investors like Lloyds Banking Group, British Patient Capital, Eurazeo, SEB, Molten Ventures (formerly Draper Esprit), Backed, and IQ Capital as well as new ones like the investment arms of some of Thought Machine’s global tier one banking clients – ING Ventures, JPMorgan Chase, and Standard Chartered Ventures.
This announcement follows a period of accelerated growth as the British fintech executes its internationalisation strategy, strengthening its five global offices and targeting new key markets to accelerate the adoption of cloud native core banking globally.
It relocated to a larger London HQ to support its headcount growth after adding more than 200 employees since 2020. The company employs more than 500 people in London, Melbourne, New York, Singapore and Sydney.
“We are delighted to have earned the support of our new and existing investors as we continue to move the world’s leading banks into the cloud. 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” Paul Taylor, CEO and founder of Thought Machine said in a statement.
Vault is Thought Machine's unique cloud native core banking platform. Developers define banking products in Vault by writing smart contracts in Python code. The services within Vault constitute a significant portion of all the functionality required to run a bank.
Hans Morris, Managing Partner at Nyca Partners added:
“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. These institutions tell us that Thought Machine’s engineering approach is unrivalled; 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 and we are very energized to be working with them as they build a new standard for core banking technology.”
Thought Machine will be using the funding to continue developing and expanding Vault. The company will also expand its international reach.
Recently, Though Machine was named B2B Fintech Of The Year 2021 by AltFi at their 8th annual Awards in London.