Daily Management Review

UK cloud banking developer becomes new 'unicorn'


UK fintech startup Thought Machine has raised $200m in a new funding round in which investors have raised its valuation above $1bn, CNBC reports.

The investment round was led by US firm Nyca Partners, which previously invested in UK fintech start-up Revolut. Investors Lloyds Banking Group, Eurazeo and SEB increased their stakes in Thought Machine in the round.

Founded in 2014 by former Google engineer Paul Taylor, the company claims its software helps large banks move from legacy IT infrastructure to a modern cloud platform. Its customers include banks such as JPMorgan Chase and Lloyds.

Taylor said his firm's mission is "not insignificant", so it requires significant investment to achieve its goals. He said Thought Machine's revenues are now in the "tens of millions" of pounds in revenue, but the company does not yet have a net profit. The company generates revenue from multi-year software subscription deals.

The company is looking to use the new investment to expand internationally. The firm opened an office in New York earlier this year. The company is also entering Asian markets such as Malaysia and Japan. About half of Thought Machine's business is now in Asia, the company claims. The company has a global workforce of about 500 people. According to Taylor, the company's IPO is likely to take place in three years.

source: cnbc.com