Tallinn-based Tuum, the next-generation core banking provider, announced on Tuesday that it has raised €25M in a Series B round of funding led by CommerzVentures, with participation from Speedinvest alongside existing investors.
The company will use the funds to accelerate its international presence, planning to expand its operation into new territories in the DACH region, Southern Europe, and the Middle East, where it is opening a new office.
The company plans to improve its sales and marketing operations by strengthening its direct sales and marketing efforts and building partnerships with managed service providers to increase sales and scalability of implementation.
The company plans to increase its investment in “smart migration” capabilities to complete complex core migrations in just two months.
Additionally, Tuum will refine its Business Builder platform, which is highly customisable through configuration, providing an attractive alternative to generic ‘one size fits all’ or ‘toolbox’ approaches of other cloud-native cores.
Lastly, Tuum will use the funds to expand its comprehensive suite of modules and rich functionality, which currently include accounts, lending, payments, and card services, catering to both the corporate and banking sectors.
Myles Bertrand, CEO of Tuum, says, “I joined Tuum in the summer of last year because I saw the gap in the market for its proposition. Everyone knows that banks need to replace their aging core banking systems if they are going to successfully adapt their business models for digital banking. However, no core banking vendor has to date made core migration simple and predictable, which is what Tuum is now doing through a combination of smart migrations, a modular and functionality-rich core, massive extensibility, and a broad ecosystem of partners. With this Series B funding, we’re not just expanding our reach: we’re redefining the very essence of core banking for a digital-first future.”
Tuum: Next-generation core banking platform
Estonia-based SaaS firm Tuum provides banking solutions for financial institutions across Europe and the UK.
Tuum says that many financial firms rely on their legacy systems, making adapting to the rapidly changing market challenging.
It offers several solutions for these firms to transform and scale their businesses. Tuum offers modules for core banking, lending, cards, and payments, the four critical functions in banking services.
The company’s core banking module streamlines the management of accounts, transactions, deposits, and pricing. Its lending module accommodates the loan management process, from application to contract.
The card module facilitates the issuance of debit and credit cards. Banking firms use Tuum’s payment module to initiate and validate payments based on their preferred payment formation rules.
The company now boasts a customer base across ten countries, with a pronounced presence in the UK and Nordics. Over the last three years, Tuum’s revenues have soared, demonstrating a compound annual growth rate of over 250 per cent.
The investor
CommerzVentures is a specialist fintech investor with €550M under management.
It backs early and growth-stage companies in the fintech, insurtech, and Climate FinTech sectors.
CommerzVentures’ launched its:
- First €100M fund in 2014
- Second €150M fund and started investing in October 2019
- Third €300M fund in 2022
Heiko Schwender, Managing Partner at CommerzVentures, adds, “At CommerzVentures, we have been following and investing in the core banking market for a long time. While it’s hard to break into, this is a huge, highly attractive space, with over $15B in annual spending. Tuum’s standout modular approach is particularly suited to today’s ever-changing environment, offering a mature, yet flexible solution to a real pain point.
Read the orginal article: https://siliconcanals.com/news/startups/tallinns-tuum-bags-25m/
