Mambu has obtained 266 million dollars in its last E Series of investment, achieving a valuation of 5,5 billion dollars to grow the integrated financial service and its banking APIs.
Embedded finance, where companies leverage APIs to integrate banking and other financial tools without having to build everything themselves from scratch, has been a major trend in Fintech over the past decade. Today, one of the biggest startups building those APIs and the backend technology behind them is Mambu.
The set of APIs Mambu services such as loans, deposits and other banking products are available, along with a wide range of analytics and other tools for developing services.
The funding is being led by TEQ Growth, the European private equity firm, and Amsterdam/London-based Mambu, does not disclose the other investors. Its latest round, when it raised $135 million in January, was led by TCV, with participation from Tiger Global, Arena Holdings, Bessemer Venture Partners, Runa Capital and Acton Capital Partners. His valuation has more than doubled since then.
Today, the company has more than 200 clients working together with some 53 million users in some 65 countries. They include large neobanks like N26, but also traditional banks such as Raiffeisen Bank, State Bank y ABN Amro.
On the other hand, Mambu also works with new players in financial services, such as telecommunications and e-commerce companies, who may not be equipped or interested in building financial services from scratch, but may see a business or operational opportunity to provide their clients with some of these tools, and focus on building more personalized financial services by leveraging building blocks provided by another company (i.e., Mambu), a model that opens the door to a much broader set of customers for Mambu in the future.
In fact, Eugene Danilkis, co-founder and CEO of Mambu, you have high hopes for where you think Mambu can be located in a broader world of financial services:
"Our vision is to create in financial services and banking what Salesforce did in CRM."
Salesforce, according to Danilkis, is not a competitor but a relevant partner: part of Mambu's power lies not only in the financial services APIs it provides, but in the networks it has also built so that those services "work well" with the entire world. rest of the IT infrastructure and applications that a business might use. In addition to Salesforce, Mambu integrates with third parties like AWS, Google, Marqeta, Comply Advantage, Deloitte, and many others. The number of calls to your APIs that Mambu handles daily amounts to about 130 million at the moment.
Mambu was heavily resourced prior to this investment, so the plan for this latest round will be to use the funds to double down on expanding its business into more markets and begin to consider what other adjacent areas the company would like to address next.
Areas like insurance, Danilkis said, are definitely on the horizon, although he did not specify and declined to say when he might launch services and what they would be. A logical area, for example, could be property insurance, as it offers mortgage APIs and works with those who are already active in real estate financing.
In the short term, they are committed to improving the financial services and the basic components to create them that they already offer. Compared to terms such as “integrated finance”, the company prefers “SaaS banking platform”, which is more in line with the role it is playing Mambu to help your clients create personalized financial services for them.
“In what most banks and fintechs focus on digitizing high-volume products, but still have a long way to go in personalizing each client,” he said. "It goes beyond loans and deposits." In the long run, she said, Mambu he wants to help them create "more complex business products where you might have lower volumes but also higher values."
He highlights that there are challenges with integrations and middleware in financial services, which is another area where Mambu will bring better technology to the market. The focus, she said, is "how to better integrate into the ecosystem," which will include creating more prebuilt integrations for third-party solutions. "We're investing in bringing much of that ecosystem together," she added. (That's the spirit of Salesforce.)
Acquisitions of other startups and companies are also expected, something that Mambu has not needed yet, focusing on organic growth so far.
TEQ Growth was in talks with Mambu before the previous round, but has invested for the first time in this Series E. “We have been following the journey and the execution of Mambu for several years,” said Carolina Brochado, a member of the advisory team of TEQ Growth. “We feel a strong connection to the vision of Mambu as an organization, given its close alignment between values of responsibility and sustainability, and we believe that the solution to Mambu it is making the financial system more accessible and affordable for millions of people around the world. We are excited to partner with one of the leading fintech companies and management teams in Europe, offering an industry-leading and unique modern cloud platform to address the huge €100.000 billion market served by banking software providers. traditional and in-house solutions.” Carolina Brochado will also join the board of Mambu in this round.
