Tech

Mambu nabs $266M at a $5.5B valuation to double down on embedded financial service and banking APIs – TechCrunch

Embedded finance, where companies leverage APIs to integrate banks and other financial tools without building everything from scratch, has been one of FinTech’s major trends over the last decade. Today, one of the biggest startups building these APIs and the back-end technology behind them is announcing a major funding round to double their opportunities.

MambuHas raised € 235 million by building a set of APIs to enhance lending, deposits and other banking products, along with extensive analytics and other tools for building financial services. This is a Series E that rates the company at 4.9 euros. $ 100 million (at today’s exchange rate, it’s about $ 266 million at a valuation of $ 5.5 billion).

Financing is led by European private equity firm EQT Growth, and Amsterdam / London-based Mambu does not disclose other investors. (When it’s the last round Raised $ 135 million in JanuaryWas led by TCV and was attended by Tiger Global, Arena Holdings, Bessemer Venture Partners, Runa Capital and Acton Capital Partners. Since then, its rating has more than doubled. )

Today, the company has more than 200 customers and works with approximately 53 million users in 65 countries. They include not only large neobanks like N26, but also existing banks like Raiffeisen Bank, BancoEstado and ABN AMro.

More broadly, Mambu may be unequipped or uninterested in building financial services from scratch, but can see business or operational opportunities that offer some of these tools to their clients. We also cooperate with new entrants to financial services such as telephone companies and e-commerce companies. Invest in building more customized financial services more directly and by leveraging building blocks provided by another company (ie Mambu). This is a model that opens the door to Mambu’s far wider range of customers in the future.

In fact, Mambu co-founder and CEO Eugene Danilkis has great ambitions in his belief that Mambu can sit in the wider world of financial services.

“Our vision is to create what Salesforce did with CRM in financial services and banking,” he said.

In that respect, Salesforce’s own ambitions are also quite large. Still, these days, Danielkis says, he’s a strong partner, not a competitor. Part of Mambu’s power lies not only in the financial services APIs it provides, but also in the webbing that those services are built to “work well.” Use all the remaining IT infrastructure and apps that your enterprise may use. In addition to Salesforce, Mambu integrates with AWS, Google, Marqeta, Comply Advantage, Deloitte and many other third parties. Mambu currently processes about 130 million API calls every day.

Mambu still had a lot of money in the bank before the salary increase, so in this round he will use that money to expand his business to more markets and what other adjoining areas the company will have. I will start to consider what I want. Work next. Areas like insurance are undoubtedly in the spotlight, according to Danilkis, but he didn’t say when the services would be launched and what those services were. For example, one of the logical areas could be real estate insurance as it already offers a mortgage API and works with APIs that are already active in real estate finance.

Soon, he still sees many opportunities in the area of ​​simply improving financial services and the building blocks to create them that it already offers. When you say “embedded finance”, he’s actually a little bristle. The company’s preferred term is “SaaS banking platform,” which speaks to Mambu’s more fundamental role in helping customers build personalized financial services.

“When we return to the industry, most banks and fintechs need to be very digital, but still feel a lot of personalized customization. It’s a product, “he said. “It’s more than lending and deposits.” In the long run, Mambu wants to help build “smaller but more valuable, more complex commercial products”. He states that financial services integration and middleware also face challenges. This is another area where Mambu offers better technology to the market. The focus is on “how to better integrate into the ecosystem”, which includes creating more pre-built integrations for third-party solutions. “We are investing in putting together much of that ecosystem,” he added. (That’s the spirit of Salesforce.)

There may also be acquisitions that Mambu has not yet made, which until now have only grown organically.

EQT was actually talking to Mambu prior to the previous round, but is only investing in this Series E for the first time.

Carolina Brochado, a partner of EQT Growth’s advisory team, said: “Given the close coordination of responsibility and sustainability values, we feel a strong connection to Mambu’s vision as an organization, and Mambu’s solutions are for millions of people around the world. We believe that we are making our financial system more accessible and affordable for us. We are excited to partner with one of Europe’s leading fintech companies and management teams, which is unique to the industry. Providing the latest state-of-the-art cloud platform, it addresses the huge € 100 billion market served by traditional banking software vendors and in-house solutions. ”She will join the board in this round.

Mambu nabs $266M at a $5.5B valuation to double down on embedded financial service and banking APIs – TechCrunch Source link Mambu nabs $266M at a $5.5B valuation to double down on embedded financial service and banking APIs – TechCrunch

Related Articles

Back to top button