Thought Machine has secured £65m funding.

The cloud banking tech firm based in London is planning to expand into North America, Australia and Japan with the investment.

The Series B round was led by European technology investor Draper Esprit and included further backing from existing investors Lloyds Banking Group, IQ Capital, Backed and Playfair Capital.

Founded in 2014 by entrepreneur and former Google engineer Paul Taylor, Thought Machine has built a core banking solution entirely in the cloud. This solution, Vault, is enabling established and challenger banks to compete in the cloud-native era, and deliver the highest levels of scalability, resilience and security.

Thought Machine counts Lloyds Banking Group, Standard Chartered, SEB and Atom Bank as clients.

CEO and founder Paul Taylor 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.

“As well as international expansion, we will put further investment into our core technology, ensuring that banks will always have the best possible cloud native platform, and allow them to keep up with technology breakthroughs in the future which bring agility, security, resilience and good economics.”

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UK TECH INVESTMENTS IN 2020

Last year Thought Machine opened a base in Singapore, while it also plans to launch in Australia and Japan. Later in 2020 the company will launch in North America.

Its London team has grown from 50 in 2018 to more than 300 today.

Vinoth Jayakumar, Investment Director, Draper Esprit, commented: “We are delighted to be partnering with Thought Machine in this phase of their growth. Our investments in Revolut and N26 demonstrate how banking is undergoing a once in a generation transformation in the technology it uses and the benefit it confers to the customers of the bank.

“We continue to invest in our thesis of the technology layer that forms the backbone of banking.

“Thought Machine stands out by way of the strength of its engineering capability, and is unique in being the only company in the banking technology space that has developed a platform capable of hosting and migrating international Tier 1 banks.

“This allows innovative banks to expand beyond digital retail propositions to being able to run every function and type of financial transaction in the cloud.”