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


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

TrueLayer lets fintech apps like Revolut and Freetrade join with prospects’ financial institution accounts utilizing know-how often called APIs, or utility programming interfaces. This implies customers of these apps can then make funds from their financial institution or view balances and transactions from totally different accounts.

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

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

“We have been closing 2020 in a particularly optimistic means,” Simoneschi instructed CNBC. “We have been going by means of an unimaginable 12 months of development,” he stated, 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 stated it can use the contemporary money to increase 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 issues.

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 information and cost providers to fintech companies and different authorized third events, offered they have consent from prospects. Different gamers within the house embody Sweden’s Tink and Britain’s Bud. They’re profiting from tech-friendly new guidelines within the U.Ok. and European Union, often called PSD2.

TrueLayer and another companies are actually trying 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 know-how for transactions.

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

It is price noting Visa continues to be an investor in Plaid, in addition to TrueLayer, that means it may benefit 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 workers by the top of 2021.

“I feel competitors is nice and advantages the ecosystem,” Keith Grose, Plaid’s head of worldwide, instructed CNBC. He added the agency has “good rivals” 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 crew. The corporate presently employs 200 folks and plans to extend its headcount by one other 50 workers this 12 months, Simoneschi stated.

Fintech has attracted billions of {dollars} in enterprise capital as traders purpose to capitalize on wild development within the sector. Globally, enterprise capitalists pumped over $17 billion into fintechs within the first quarter of 2021, in keeping with information from PitchBook, up 44% from the identical interval a 12 months earlier and the best quarterly quantity for the reason that second quarter of 2018. In the meantime, tech companies like PayPal and Sq. have seen their market values surpass that of Wall Road 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 stated banks ought to be “scared s—less” of fintechs, and accused Plaid of “unfair competitors” and “improperly” utilizing banking information. Plaid, which counts JPMorgan as a shopper, stated that “information privateness and safety are core to the whole lot we do, together with the info trade agreements we now have with JPMorgan Chase amongst many different banks.”

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