Mambu raises €110 million in round led by TCV

By Sunniva Kolostyak

German Software-as-a-Service (SaaS) banking platform provider Mambu has announced a €110 million funding round, bringing the total valuation of the FinTech to over €1.7 billion.

The latest round was led by TCV, the growth-stage investor which has previously invested in Netflix, RELEX, Spotify and WorldRemit, with additional investments from Tiger Global and Arena Holdings. Existing investors Bessemer Venture Partners, Runa Capital and Acton Capital Partners also contributed.

According to Mambu, the financing will be used to accelerate growth and deepen its footprint across the 50 markets it already operates in – including Brazil, Japan and the US.

Eugene Danilkis, co-founder and CEO of Mambu, said the company will continue its mission to make banking better for a billion people around the world and address one of the largest, most complex global market opportunities, which is still in the infancy of cloud.

Danilkis said: “When Mambu launched in 2011, we knew the future of banking would have to be built on agile and flexible technology. Nearly a decade later, this is more true now than ever, particularly given developments over the past year. As an increasing number of challenger and established banks sign on to prepare themselves to thrive in the FinTech era, we have, and will continue to provide them with a world-class platform on which to build modern, agile customer-centric businesses.”

Mambu’s SaaS banking platform accelerates and simplifies the way financial products are built and serviced by any financial institution and is used by traditional banks, FinTech startups, financial institutions, nonprofits and other businesses to power their financial products and services. Its customers include ABN AMRO, N26, OakNorth, Orange and Santander.

Moreover, the FinTech is hoping to expand both the breadth and depth of its platform and is planning to double the team to over 1000 by 2022.

John Doran, General Partner at TCV, who joins the Mambu board, added: “Mambu was one of the first companies to leverage the opportunity to move banking software into the cloud. The team has built a highly composable, truly cloud-native product in a multi-billion dollar, rapidly-growing market traditionally dominated by large, slow-moving on-prem vendors. We have been following Mambu’s progress for many years and are truly delighted to be able to partner with Eugene and the entire Mambu team on their journey to expand their offerings to customers worldwide.”

Since its inception, TCV has invested over $14 billion in leading technology companies, including more than $2.5 billion in FinTech, and has helped guide CEOs through more than 125 IPOs and strategic acquisitions.

This announcement follows another year of approximately 100 per cent year-on-year growth for Mambu in a banking software market which Gartner currently values at over $100 billion and is forecasting to grow at double-digits. FT Partners was the exclusive financial advisor on this transaction.