Thought Machine Raises $160m in Series D Funding Round – Doubling Valuation to $2.7bn and Accelerating Plans to Bring World’s Banks Onto Cloud Technology

Rhea-AI Summary

Thought Machine, a cloud native banking technology company, has successfully closed its Series D funding round, led by Temasek, with participation from Intesa Sanpaolo and Morgan Stanley. The company’s valuation has doubled to $2.7 billion since its last funding round. Proceeds will be used to enhance its core banking platform, Vault Core, and continue global expansion, particularly targeting the German market. The firm has also strengthened its executive team with new CFO and CRO appointments, and secured a license agreement extension with Lloyds Banking Group until 2029.

Positive

• Valuation increased to $2.7 billion, a 100% rise from Series C round.
• Funding will enhance technology and expand global market presence.
• Lloyds Banking Group extended its license agreement until 2029.
• Strong participation from notable investors like Temasek and Morgan Stanley.

Negative

• None.

LONDON--(BUSINESS WIRE)-- Thought Machine, the cloud native banking technology company, today announces it has closed its series D funding round, led by Temasek, the global investment company headquartered in Singapore, with participation from Intesa Sanpaolo and Morgan Stanley. Existing investors following-on in this round include: Eurazeo, ING, JPMorgan Chase, Lloyds Banking Group, and SEB.

Thought Machine is now valued at $2.7bn – a 100% increase from the company’s valuation at the close of its series C round. This funding round closely follows Thought Machine's series C round, which completed at the end of 2021, demonstrating the company’s accelerated growth trajectory and continued interest from global investors.

Thought Machine will also use proceeds from the funding to continue investing in its technology – expanding the capabilities of its core banking platform and innovating in new product lines. Funds will continue the company’s global expansion plans – targeting markets where there is increasing demand for cloud-native technology, including Germany. Despite banking being at the centre of Germany’s economy, the majority of the country’s banks are encumbered by legacy systems and traditional core systems, especially large incumbents.

Thought Machine’s core banking platform Vault Core is developed natively for the cloud – uniquely positioned to support large-scale banks undertaking core transformation, as well as smaller banks and fintechs launching new propositions to the market. No other core banking vendor has signed as many Tier 1 banks as clients such as Intesa Sanpaolo, Lloyds Banking Group, ING, SEB, and Standard Chartered, among others around the world.

Lloyds Banking Group, an early investor in Thought Machine and a participant in this round, has extended its licence agreement with the business until 2029. This extension is part of Lloyds Banking Group’s continuing technology modernisation programme.

Thought Machine continues to strengthen 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.

Carlo Messina, managing director and CEO, Intesa Sanpaolo, said: “We are investing c.£40m into Thought Machine, a fintech innovator and partner we consider strategic to the industrial upgrade of Intesa Sanpaolo. Their cloud-based technology is fundamental to our transformation from incumbent to digital challenger, improving our core banking technology and providing the foundation for our new digital bank, Isybank.”

Paul Taylor, founder and CEO of Thought Machine, said: “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. We will use this new capital to accelerate our expansion plans, serve more clients around the world, and continuously refine the capabilities of our core banking platform and other products.”

About Thought Machine

Thought Machine has developed the foundational layer of modern banking. Its cloud native core banking engine, Vault Core, is trusted and used by leading banks and financial institutions around the world – including Intesa Sanpaolo, Lloyds Banking Group, Standard Chartered, ING, Atom bank, Curve and more.

Vault Core has been written from scratch as an entirely cloud native platform and gives banks full control to build any product required to flourish in a rapidly changing world.

Thought Machine is currently a team of more than 500 people spread across offices in London, New York, Singapore, Sydney, and Melbourne, and has raised more than $500m in funding.

For more information visit thoughtmachine.net

About Temasek

Temasek is a global investment company with a net portfolio value of S$381 billion (US$283b) as at 31 March 2021. Headquartered in Singapore, it has 13 offices in 9 countries around the world.

The Temasek Charter defines Temasek’s three roles as an Investor, Institution and Steward, which shape its ethos to do well, do right, and do good. As a provider of catalytic capital, it seeks to enable solutions to key global challenges.

With sustainability at the core of all Temasek does, it actively seeks sustainable solutions to address present and future challenges, as it captures investible opportunities to bring about a sustainable future for all.

For more information on Temasek, please visit www.temasek.com.sg.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220515005034/en/

Thought Machine

Asif Faruque

Head of Communications

press@thoughtmachine.net

Temasek

Paul Ewing-Chow

media@temasek.com.sg

Source: Thought Machine

FAQ

What was the valuation of Thought Machine in its Series D funding round?

Thought Machine was valued at $2.7 billion in its Series D funding round.

Who are the main investors in Thought Machine's Series D funding?

The main investors include Temasek, Intesa Sanpaolo, and Morgan Stanley.

What will Thought Machine use the Series D funding for?

The funding will be used to enhance its core banking technology and support global expansion.

What is the significance of Lloyds Banking Group's agreement with Thought Machine?

Lloyds Banking Group extended its license agreement with Thought Machine until 2029, indicating confidence in its technology.

How does Thought Machine's technology compare with legacy banking systems?

Thought Machine's Vault Core is designed to support modern banking needs, unlike older legacy systems that many banks still use.