Banking software startup Mambu secures unicorn valuation
A sign hangs on a branch of Banco Santander in London, UK on Wednesday 3rd February 2010.
Simon Dawson | Bloomberg via Getty Images
LONDON – Mambu is the newest financial technology company to achieve coveted unicorn status.
Mambu is headquartered in Berlin and sells software to large and small banks to help them develop their own digital banking platforms. The company’s customers include companies such as Santander and ABN Amro, as well as fintech companies N26 and OakNorth.
On Thursday, Mambu announced that its valuation had risen from € 110 million ($ 135 million) to € 1.7 billion ($ 2.1 billion) in a funding round. The new round was led by TCV, an investor in Facebook and Netflix. Other investments came from Tiger Global and Arena Holdings.
Mambu is one of several start-ups that want to support rather than disrupt banks on their way to introducing a modern cloud infrastructure and turning away from so-called “legacy” technology.
It competes with companies like the UK Thought Machine, founded by former Google engineer Paul Taylor, and 10x Future Technologies, the fintech company owned by former Barclays CEO Antony Jenkins.
Mambu plans to use the fresh money to fuel growth – the company claims its sales doubled in the past year – and expand its geographic footprint, with a focus on countries like Brazil, Japan, and the nearly 500 Employees it currently employs.
“When Mambu first launched in 2011, we knew the future of banking had to be built on agile and flexible technologies,” said Eugene Danilkis, co-founder and CEO of Mambu, in a statement. “Almost a decade later, this is more true than ever, especially given the developments over the past year.”
Danilkis added, “With this latest round of funding, we can accelerate our mission to improve banking for one billion people around the world and address one of the largest and most complex global market opportunities that are still in the infancy of the cloud.”
The news comes at a time when the adoption of digital banking has accelerated while cash use is falling due to the coronavirus pandemic.
According to Mastercard research, 42% of Europeans manage their finances digitally more often than before the pandemic, while 62% are considering switching from physical banking to digital platforms.
Meanwhile, Accenture predicted that cash use could fall by up to 28% in the UK and up to 11% across Europe as health concerns about Covid and lockdown measures mount.