Series B28 July 2020

Thought Machine secures £32.2m in series B funding extension led by Eurazeo Growth

Eurazeo Growth led the extension round, backed by British Patient Capital and SEB, to support international expansion and product development.

£32.2MSeries B

Thought Machine builds cloud native core banking technology platforms designed to support financial institutions undertaking digital transformations. Its products serve both major international tier-one banks and smaller fintech firms.

Thought Machine has secured £32.2m in an extension to its series B round, bringing the total raised for the round to £95.7m. Eurazeo Growth led the financing, with participation from new investors British Patient Capital and SEB. Royal Park Partners acted as financial adviser for the transaction.

The capital will be directed towards international business expansion, including recruitment across the Asia Pacific region, the United States, and Australia. Funds will also support ongoing research and development for new products and features, such as an upcoming advanced payments solution.

This latest raise follows an earlier £83m tranche secured in March, which was led by Draper Esprit and supported by Lloyds Banking Group, IQ Capital, Backed, and Playfair Capital. The company continues to scale its operations globally, serving major financial institutions including Standard Chartered, Atom bank, and SEB.

From the founder

"The prospect of transitioning to cloud native technology is now at the forefront of every major bank’s roadmap. Plans have been hastened in the wake of regulatory pressure, economic uncertainty and the need to manage cost-income ratios. Our flagship core banking product, Vault, brings the best in agility, resilience and security and is being used by major banks and fintech companies around the world. We are delighted to partner with Eurazeo Growth, British Patient Capital and SEB, which demonstrates ongoing investor interest in our technology and the significant market opportunity we are addressing."

Paul Taylor

Founder at Thought Machine

Investor perspective

"Eurazeo Growth partners with category leaders that have significant market potential in a fast-changing world driven by digitalization. Our investment in Thought Machine demonstrates our belief in the technology Paul and the team have been building and the importance of cloud native technology for the finance industry. Banks around the world are undergoing a fundamental digital transformation while moving to the cloud in response to increasing regulatory complexity, more sophisticated customer needs and growing competition from new entrants. Fintechs are maturing to position themselves meaningfully in the value chain. Thought Machine’s commercial traction is a testament to that paradigm shift. This is why we are so excited about partnering with Thought Machine."

Zoé Fabian

Managing Director, Eurazeo Growth