FintechOS the London-based technology provider for insurers, banks, and other financial services companies, announced it has raised US$60 million (€51 million) in Series B funding.
The round was led by venture capital firm Draper Esprit. Existing investors Earlybird Digital East, Gapminder Ventures, LAUNCHub Ventures, and OTB Ventures also participated in the round. Further investors are set to be announced at a later date.
The funds will be primarily used to cement the company’s position in Europe and the UK and fuel international expansion to target financial institutions in Asia-Pacific, Middle East and Africa, and North America. This includes new offices in the U.S., Dubai, and Singapore, along with the addition of 120 new staff members resulting in a 40% increase in overall headcount.
FintechOS also plans to use the funds to expand its core systems capabilities in banking and insurance, strengthening its low-code self-service proposition and personalization through AI and machine learning as well as product and service offerings. The overall aim is to accelerate growth beyond the 200% compound annual growth rate (CAGR) achieved to date.
While many financial service providers are planning to invest heavily in new technology to accelerate digitalization, institutions continue to struggle with existing digital transformation strategies, said FintechOS in a statement.
Instead of lengthy and laborious rip-and-replace digital transformation strategies that require high levels of technical expertise and investment, FintechOS allows institutions to build, test, and scale new digital products and services in weeks rather than months, using a low-code, plug and play approach.
“When we launched FintechOS in 2017, we could already see existing solutions to digital transformation would struggle to deliver tangible results,” commented Teodor Blidarus, co-founder and CEO at FintechOS. “By contrast, our unique approach has quickly inspired a sea-change in how financial institutions address digitization and engage with their customers.”
“Not only is our technology helping financial institutions become customer-centric, but it’s also helping them provide products and services to more people and businesses,” said Sergiu Negut, co-founder of FintechOS, who also is a chief financial officer and chief operating officer.
“With so many markets still underserved, the ability to tailor offerings to a segment of one offers the opportunity to increase financial inclusion and adheres to our ideal that easy access to financial services is essential,” Negut added.
Vinoth Jayakumar, the partner at Draper Esprit, said: “When we met Teo and Sergiu, we were immediately convinced of their vision: a data-led, end-to-end platform, facilitated with a low-code/no-code infrastructure. Incumbent financial services firms have cost-to-income ratios up to 90%, so we see a huge and increasing need for infrastructure software that allows digitization at speed, ease, and lower cost.”