Tuum raises EUR25m series B financing, led by CommerzVentures, to fund product and market development
Tuum raises EUR25mseriesBfinancing, ledby CommerzVentures, to fund product and market development
London, 06 February 2024, -Tuum, the leading next-generation corebanking provider, today announces that it has raised EUR25m, in aseriesBfinancing round ledby CommerzVentures, with participation from Speedinvest alongside existing investors.
Tuum has expanded rapidly since signing its first client partnership in February 2019, working withbanks to ease their digital transition onto cheaper, flexible systems that can free them up to develop new products and enter new verticals. The company nowboasts a customerbase across 10 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%.
Andreas Kitter, co-CEO of LHV UK, aBanking-as-a-Service provider working with over 200 fintechs, commented: “Bank executives are put off doing core replacementsbecause of the costs and risks involved. With Tuum, we migrated millions of customers accounts in 2 months. We are now running a state-of-the-art core system with a small team and spending 75% of our ITbudget on innovation.”
The fresh infusion of capital willbolster Tuum’s international presence, allowing it to target new territories in the DACH region, Southern Europe, and the Middle East, where it is opening a new office. The company plans to enhance its direct sales and marketing operations, while also fortifying its partner channel with key managed service relationships to amplify sales reach and implementation scalability.
The fundraise will alsobe used to deepen Tuum’s key competitive differentiators. The company will increase investment into its “smart migration” capabilities, which are making complex core migrations possible in as little as two months. Further investments will refine Tuum’s 'BusinessBuilder', a platform designed for significant customisation through configuration, providing a compelling alternative to the generic 'one size fits all' or 'toolbox' approaches of other cloud-native cores. Finally, Tuum will invest funds into expanding its comprehensive suite of modules and rich functionality, which currently include accounts, lending, payments, and card services, catering toboth corporate andbanking sectors.
Commenting on the fundraise,MylesBertrand, CEO of Tuum,said: “I joined Tuum in the summer of last yearbecause I saw the gap in the market for its proposition. Everyone knows thatbanks need to replace their ageing corebanking systems if they are going to successfully adapt theirbusiness models for digitalbanking. However, no corebanking 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 abroad ecosystem of partners. With thisSeriesBfunding, we're not just expanding our reach: we're redefining the very essence of corebanking for a digital-first future.”
Heiko Schwender, Managing Partner at CommerzVentures, added: “At CommerzVentures, we havebeen following and investing in the corebanking market for a long time. While it’s hard tobreak into, this is a huge, highly attractive space, with over USD15bn 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.
Tier 2 to 5banks around the world will have to replace their ageing core systems smoothly and cost-effectively. Tuum has developed an impressively mature and differentiated offering that can help them do just this. We are delighted tobe leading thisseriesBand we look forward to working with the Tuum team to help realise the company’s massive potential.”
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About Tuum
At Tuum, our mission is to allowbanks to replace their legacy systems quickly and safely, to lower their maintenance spending and to open up new possibilities to adapt and prosper in the digital world; in short, to set them free.
We employ a smart migration approach to helpbanks to move off their current systems. Using this approach, our clients go-live on average within 7 months.
Once live, our system enablesbanks to easily launch new products and open up new verticals. Offering more than core, Tuum allowsbanks to operate multiplebusiness lines from a single system, including accounts, lending, payments and cards, as well as go further through access to a pre-configurated ecosystem of partner solutions.
Tuum also allows forbusiness transformation. Ourbusinessbuilder givesbanks the fine-grained settings to precisely configure their operating, sourcing and distribution models to launch unique models to capitalise on the possibilities of digitisation.
Tuum. Corebanking. Without limits.
Discover how you canbuild, expand, and scale with Tuum atwww.tuum.com