Posted on: April 8, 2021 Posted by: Betty Lee Comments: 0

Francesco Simoneschi, CEO and co-founder of U.Ok. fintech start-up TrueLayer.


LONDON — British monetary expertise start-up TrueLayer says it is raised $70 million in recent funding, highlighting continued urge for food from buyers for fast-growing fintech companies.

TrueLayer lets fintech apps like Revolut and Freetrade join with prospects’ financial institution accounts utilizing expertise referred to as APIs, or software programming interfaces. This implies customers of these apps can then make funds from their financial institution or view balances and transactions from completely different accounts.

The corporate mentioned its newest funding spherical was led by Addition, the enterprise capital agency based by former Tiger International associate Lee Fixel. Present buyers Anthemis Group, Join Ventures, Mouro Capital, Northzone and Singapore’s Temasek additionally invested.

Francesco Simoneschi, TrueLayer’s CEO and co-founder, mentioned in an interview that the agency determined to boost extra cash on the again of sturdy development in 2020, helped in no small half by the coronavirus pandemic and a shift from shoppers towards digital technique of managing their funds.

“We had been closing 2020 in a particularly constructive approach,” Simoneschi instructed CNBC. “We had been going by way of an unimaginable 12 months of development,” he mentioned, including the corporate noticed its cost volumes spike as a lot as 600 instances.

TrueLayer declined to share its financials or valuation. The corporate, which additionally counts Chinese language web large Tencent as a shareholder, has now raised $142 million in funding up to now.

TrueLayer mentioned it’ll use the recent money to develop its providers internationally, constructing out its presence in Europe first earlier than focusing on a rollout in Australia. It is also exploring whether or not to launch in Brazil additional down the road.

Open banking

The information comes a day after Silicon Valley agency Plaid — which competes with TrueLayer in Europe — introduced it had raised $425 million in a brand new funding, valuing the corporate at $13.4 billion. Plaid had initially agreed to be acquired by Visa final 12 months for $5.3 billion, however scrapped the deal after the U.S. authorities raised antitrust considerations.

Plaid and TrueLayer are a part of a brand new motion in finance referred to as “open banking,” which goals to open up treasured banking knowledge and cost providers to fintech companies and different permitted third events, offered they have consent from prospects. Different gamers within the house embrace Sweden’s Tink and Britain’s Bud. They’re profiting from tech-friendly new guidelines within the U.Ok. and European Union, referred to as PSD2.

TrueLayer and another companies at the moment are seeking to undercut card networks like Visa and Mastercard, by permitting fintech apps to provoke financial institution transfers on behalf of their customers, at a lot decrease charges. GoCardless, a fintech platform that processes direct debit funds, is additionally growing open banking expertise for transactions.

“Open banking generally is a actual contender to the normal card networks,” Simoneschi mentioned. “The query is, can the cardboard firms embrace this transformation, or will they resist?”

It is price noting Visa remains to be an investor in Plaid, in addition to TrueLayer, which means it may gain advantage long run from the rise of open banking providers. In the meantime, Mastercard final 12 months purchased Finicity, one other participant within the house.


Plaid plans to greater than double its European workforce from 40 to 100 staff by the tip of 2021.

“I believe competitors is nice and advantages the ecosystem,” Keith Grose, Plaid’s head of worldwide, instructed CNBC. He added the agency has “good opponents” however that its rivals do not provide the “transatlantic bridge” it is constructed with operations in each the U.S. and Europe.

TrueLayer has plans of its personal to spice up its workforce. The corporate presently employs 200 individuals and plans to extend its headcount by one other 50 staff this 12 months, Simoneschi mentioned.

Fintech has attracted billions of {dollars} in enterprise capital as buyers goal to capitalize on wild development within the sector. Globally, enterprise capitalists pumped over $17 billion into fintechs within the first quarter of 2021, in response to knowledge from PitchBook, up 44% from the identical interval a 12 months earlier and the best quarterly quantity because the second quarter of 2018. In the meantime, tech companies like PayPal and Sq. have seen their market values surpass that of Wall Avenue titans like Goldman Sachs.

Nonetheless, the sector’s meteoric development has rattled some leaders within the banking world. JPMorgan CEO Jamie Dimon not too long ago mentioned banks needs to be “scared s—less” of fintechs, and accused Plaid of “unfair competitors” and “improperly” utilizing banking knowledge. Plaid, which counts JPMorgan as a shopper, mentioned that “knowledge privateness and safety are core to every thing we do, together with the information change agreements we now have with JPMorgan Chase amongst many different banks.”

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