Only seven years ago, British fintech startup Thought Machine was launched with a mission to bring the world’s major banks off old-school IT infrastructure and onto the cloud. With the $200 million raised in its latest round of funding, the promise of Thought Machine may become a reality sooner than anyone had expected.
The funding round was led by venture capital firm Nyca Partners as well as JPMorgan Chase, ING, and Lloyds Banking Group, and has pushed the company over the much-vaunted $1 billion valuation line. It is expected that the firm will invest their new funding heavily in markets across the Asia–Pacific region, as Founder and Chief Executive Officer Paul Taylor identifies this region as the source of about half of the company’s business.
Despite Thought Machine’s remarkable success, it’s clear the company has a steep road ahead. Competitors such as Mambu have been valuated at more than twice Thought Machine’s latest high-water mark, and JPMorgan and other major players have struggled to launch and maintain their own digital banking platforms. What’s more, even with tens of millions of pounds brought in annually through its software subscription packages, Thought Machine is not yet profitable, according to Taylor.