Romanian FintechOS raises USD 60 mln in Series B funding round to continue international expansion
Romanian-born company FintechOS, a global technology provider for banks, insurers and other financial services companies, has raised USD 60 million (EUR 51 million) in Series B funding. The company didn’t mention the valuation at which this round took place.
The round was led by Draper Esprit, a leading venture capital firm whose investments include Form3, ICEYE, Revolut, Thought Machine, and UiPath. 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 company will primarily use the funds to cement its 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 USA, 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 the low-code self-service proposition and personalization through AI and machine learning in customer journeys and product and service offerings. The overall aim is to accelerate growth beyond the 200% CAGR achieved to date.
Across the global financial service providers are planning to invest heavily in new technology to accelerate digitalization. FintechOS aims to ride this wave and become a leading technology provider. With its low-code, self-service approach that augments legacy systems, FintechOS allows institutions to build, test, and scale new digital products and services in weeks rather than months, the company says.
“When we launched FintechOS in 2017, we could already see existing solutions to digital transformation would struggle to deliver tangible results. By contrast, our unique approach has quickly inspired a sea-change in how financial institutions address digitization and engage with their customers. Events over the last year have only increased pressure on our industry to evolve and, as a result, we’re seeing growing demand for our powerful platforms. Our latest round of funding will help us grow at the pace needed to improve outcomes for financial institutions and their customers globally,” said Teodor Blidarus, co-Founder and CEO at FintechOS.
“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. 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. We’re delighted to be working with investors who share our views on how fintech should be transforming the financial services industry,” added Sergiu Negut, co-Founder, CFO & COO at FintechOS.
“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. Draper Esprit builds enduring partnerships; with the team at FintechOS we hope to build an enduring fintech company that will dramatically change financial services experiences for people all over the world,” commented Vinoth Jayakumar, Partner at Draper Esprit.
The new funding round comes after a Seed round of USD 2 mln in 2018 and a Series A round worth USD 14 mln in late 2019. Romanian venture capital fund GapMinder led the seed round in 2018 and also participated in the Series A and Series B rounds. “GapMinder is in the unique position of identifying best high-tech companies in early-stage in Romania and Central Europe and scaling them globally. One of the best examples is FintechOS, which evolved dramatically from a start-up into a growth stage company. FintechOS is operating on a paradigm shift - their products and services are transformative for the financial services industry and possibly even other sectors in the future. Its vision and state-of-the-art technology help banks and insurance companies drastically speed up implementing new and fully automated ways to deliver their services to their customers or interact with their employees and ecosystems. All of this while increasing ROI and easily interacting with existing systems. And 2020 was a year of extra-validations and accelerated growth for FintechOS, despite the unusual overall context. As «the first believers» in their team and company, we are happy and confident to follow on in Series B and see their international hyper-growth going further,” stated Dan Mihaescu, Founding Partner of GapMinder.