Thought Machine doubles valuation to $2.7 billion

New investors Intesa Sanpaolo and Morgan Stanley join existing backers Eurazeo, ING, JPMorgan Chase, Lloyds Banking Group, and SEB in the round, demonstrating Thought Machine's increasing penetration among big blue chip institutions.

‍Paul Taylor, founder and CEO of Thought Machine, says: “This new round of funding bringing Temasek, Morgan Stanley, and Intesa Sanpaolo into the business is our statement of intent: we intend to become the leader in core banking technology, and are being deployed by the biggest, most successful banks around the world.”

Intesa San Paolo's interest in Thought Machine was first flagged in February when it announced plans to use the vendor to build the backbone for a new mass market digital bank, Isybank, that will initially target its four million mass market users in the country.

Carlo Messina, managing director and CEO, Intesa Sanpaolo, says: “We are investing c.£40m into Thought Machine, a fintech innovator and partner we consider strategic to the industrial upgrade of Intesa Sanpaolo. Their cloud-based technology is fundamental to our transformation from incumbent to digital challenger, improving our core banking technology and providing the foundation for our new digital bank, Isybank.”

Further good news for Thought Machine comes Lloyds Banking Group, which has extended its licence agreement with the business until 2029 as part of its continuing technology modernisation programme.

Taylor says the funding will be used to support the company's global ambitions, building on its existing operations in New York, Singapore and Australia. Thought Machine has set out plans for further expansion in Asia Pacific, growing in markets such as Vietnam, Thailand, Indonesia and Philippines. The company has recently opened a new office in Sydney to expand its operations in Australia, and is opening a new office in Miami to service Latin America.