Mambu raises US$265.7mn in Series E funding round

Mambu’s latest investment drive has raised the digital bank’s valuation to $5.4bn as the digital bank continues its global roll out

Mambu has announced the results of its latest funding drive, which raised the all-digital bank $265.86 in a Series E round led by EQT Growth, the growth equity strategy of the purpose-driven global investment organization EQT.

The market-leading, modern SaaS banking platform now has a company valuation of $5.4bn post-money, making it one of the highest-valued B2B SaaS companies founded in Europe.

Mambu’s digital banking services have seen a remarkable rise in growth as customer demand for frictionless experiences has skyrocketed. The fintech’s SaaS banking platform accelerates and simplifies the way financial products are built and deployed by financial institutions. 

According to reports, Mambu’s technology is helping to drive the creation of new fintechs as well as the migration of existing financial institutions onto more modern tech stacks. The company counts banks, lenders, fintech, and financial institutions as its customers, with over 50 million end-users leveraging the bank’s technology on a daily basis.

Mambu investment plans

The digital bank has announced it will use the funding to drive forwards its next-generation platform. Plans also include the rollout of both new functionality as well as technical capabilities. Mambu will also continue to expand its already-global footprint and customer success model to further support its international customer base which is currently active across 65 countries. There will be a specific focus on twelve key markets.

EQT Growth,  a leading investor in Mambu, shares a commitment with the bank for responsible investing and diversity and inclusion. EQT was the first private markets firm to formalize science-based targets to address climate change and one of the first companies in the world to have enshrined its Statement of Purpose to have a positive impact on its Articles of Association. 

EQT Growth also plans to work closely with Mambu to roll out its global expansion, platform innovation, and ramp-up of key hires across the growing platform. 

Digital banking and market growth

The banking and securities enterprise software market has reached more than $113bn in size and is experiencing double-digit annual growth, according to reports by Gartner. Demonstrating the worldwide demand for modern banking software, Mambu has delivered year-on-year growth of more than 120% in Q3 of 2021. 

The bank also signed more than 40 new customers in 2021, with more than 55% of them now situated outside of Europe. This is alongside important commercial deployments internationally including N26, Raiffeisen Bank, BancoEstado, and ABN Amro. 

Reports show the bank has a workforce of 800 employees globally and has said the new investment will enable it to continue to invest in both new technologies, its people, and the community. To date, Mambu has a  top-decile employee satisfaction score, a progressive flexible work environment with a four-day summer schedule, and robust ESG and sustainability strategies for the next decade.  

Mambu will use its fresh funding to further accelerate innovation in its next-generation platform, with the ambition of rolling out both new functionality as well as technical capabilities. The company will also continue to expand its already-global footprint and customer success model to further support its international customer base which is active across 65 countries today, with a specific focus on twelve key markets.

Mambu vision and investment strategy

Speaking about the latest investment round and valuation news, Eugene Danilkis, co-founder and CEO of Mambu, explained, “Our vision in creating Mambu was always to create an industry-leading platform that will enable more than a billion people to have brilliant banking experiences. We want to be able to empower our customers to create any financial product anywhere in the world and create amazing customer experiences”

He added, "This latest round of funding will allow us to accelerate our plans in expanding our mission-critical banking platform to further enable composable business models which are agile and continuously evolving. EQT is a partner who shares our views that we need to do this sustainably and fairly to all who contribute to this exciting never-ending journey and to leave a positive social impact in everything we do.”

Mambu roll-out strategy in brief

  • Mambu's SaaS banking platform is now valued at $5.4bn, making it the largest private fundraiser to date for a banking software platform 
  • The round was EQT Growth, which supports Mambu’s commitment to sustainability, diversity, and inclusion, and workplace innovation
  • Mambu has over 200 customers and 50 million end-users across Europe, North America, Asia Pacific, the Middle East, and Latin America, Mambu’s Q3 2021 revenues are up 120% compared to Q3 2020
  • The all-digital bank plans to speed up investments in innovation areas for its next-gen banking platform. Mambu will also build on its strategic commercial partnerships and deepen its global footprint and customer services
Share

Featured Articles

How the economic climate is impacting alternative finance

The economic climate is having a huge impact on the alternative finance space. We spoke to three leading industry experts to find out more

Has the ‘gamification’ of investing apps gone too far?

In order to attract new customers into the fold, investing apps are trying to make their platforms engaging – but has this led to a problematic culture?

Top 10 Digital Reports & Consultancies for the fintech space

In the fintech industry, knowledge is power. We’ve rounded up the top 10 financial reports and consultancies for fintech leaders to follow

Analysis: China's civil unrest & the long-term economic view

Financial Services (FinServ)

SIX fintech sectors transforming the financial industry

Financial Services (FinServ)

Luvleen Sidhu on founding and leading BM Technologies

Banking