Cloud banking platform Thought Machine raises £65m

David Prior's picture
by David Prior

London-based cloud banking startup Thought Machine has raised $65million to drive its global expansion.

Founded six years ago by former Google engineer Paul Taylor and staff by a number of ex-Googlers, Thought Machine has built a core banking solution entirely in the cloud.

Its cloud native technology is an alternative to the legacy core banking platforms that high street lenders are struggling to modernise.

Clients include Lloyds Banking Group, Standard Chartered, SEB and Atom Bank.

The fundraise will be used to expand into the US and further its footprint in the Asia Pacific region, where it already has a base in Singapore.

The round was led by venture capital firm Draper Esprit, with all of Thought Machine’s existing investors (Lloyds Banking Group, IQ Capital, Backed and Playfair Capital) all particating, with IQ Capital contributing £15m from its new scale up fund.

In 2018, Lloyds took a 10% stake in the fintech in return for an £11m investment, part of a wider £18m Series A funding round.

Paul Taylor, CEO and founder of Thought Machine, said: “For the past six years, our purpose has been to offer banks a next-generation solution to liberate them from legacy systems which plague the financial services industry.

"This funding round comes at a pivotal stage in the company’s growth. Thought Machine’s revenues are very healthy, as we see cloud native banking become the most common desired target architecture for the world’s banks. The customer demand is huge, and this investment allows us to grow rapidly enough to serve all our target markets."

The company's headcount has risen from 50 to 300 over the past 18 months.