- Berlin-based fintech startup Mambu has raised $266 million in fresh funding.
- The new round comes from EQT Growth and values the 10-year-old business at $5.5 billion.
- Check out the pitch deck Mambu used to raise its second funding round of 2021.
Cloud banking startup Mambu has raised its second funding round of the year, more than doubling its valuation in the process to $5.5 billion.
The Berlin-based company, which was founded in 2011, has developed a platform that can help wean traditional banks off their legacy tech stacks and enable fintechs to offer fully cloud-based banking services.
The market for cloud-based banking infrastructure is booming as financial institutions aim to offer more customized products such as personal or business loans to customers with greater ease and at a lower cost.
“The market is large but more of it is embracing this new model and it’s growing by leaps and bounds every year,” Eugene Danilkis, Mambu CEO, told Insider.
“Three or four years ago players weren’t talking about cloud, now it’s a given for the industry as companies now realize it’s about having tech that enables you to have a new operating model which is more like a tech company.”
Mambu has brought in $266 million from EQT Growth to continue fuelling its product and geographic growth. The German startup previously raised $135 million in January 2021 from Tiger Global. Danilkis added the company had more than doubled in value since its Series D round at the start of the year, when it was worth $2.1 billion.
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N26, British lending platform OakNorth, Orange, and Santander, are among Mambu’s customers. The company claims to have added around 40 new clients this year.
Danilkis said the company is still on track to increase its headcount to more than 1,000 people by next year with around 800 staff at the startup now. The funding will go towards further development of the company’s commercial and engineering teams across key markets like the US and Latin America with new products and services set to be announced.
Much of the anticipated product growth will come in the form of deepened integrations with third-party companies via APIs to offer a greater number of services to clients with improved accessibility.
Mambu began considering a new funding round during the summer and opted to work with EQT Growth having held conversations during the company’s last round, Danilkis said.
“Our current focus is on growth, not profitability,” he added. “We believe we are allocating capital in a sustainable way to help us grow by not throwing good money after bad which is keeping our margins strong.”
Check out Mambu’s $5.5 billion deck below:
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