10x Future Technologies Raises $187m
Fundraising will support 10xâ€™s plans to scale its platform to 1 billion end-user customers worldwide within the next decade
Funds and accounts managed by BlackRock and CPP Investments co-led oversubscribed investment round with support from existing investors
10x Future Technologies today announces the completion of an oversubscribed $187 million Series C financing round, co-led by funds managed by BlackRock and Canada Pension Plan Investment Board (CPP Investments) and supported by existing investors JPMorgan Chase, Nationwide, Ping An and Westpac.
10x Future Technologies announces the completion of an oversubscribed $187m Series C financing round. @10xbanking #cloudnative #banking #transformation10x https://t.co/gzcqY8YDfB pic.twitter.com/LROLFsRuUE
— 10xBanking (@10XBanking) June 16, 2021
The London-based technology company will use the funding to support its expansion plans into new markets, including North America, as well as further investment into the development of the cloud native 10x SuperCoreâ„˘ platform.
â€śWith our microservices architecture and API-first design, our platform has been purposefully designed to enable the worldâ€™s largest banks to transform their customer experience and economics. Our vision is to reliably support more than one billion of their customers within the next 10 years,â€ť Jenkins added.
Commenting on the investment, BlackRock Head of Innovation Capital William Abecassis said: â€śWe have been impressed with 10xâ€™s strategy and ambition to play a key role at the heart of transformations taking place in financial services, driven by technology innovation, consumer expectations and regulatory reform. We are excited to be investing in the business as it scales into new markets.â€ť
Leon Pedersen, Managing Director and Head of Thematic Investing, CPP Investments said: â€ś10x is very well placed to change how big banks are built and deliver for their customers. 10x presents an attractive opportunity for a long-term investor like CPP Investments as we believe they will benefit from their exposure to the structural growth trend of financial institutions investing in digital initiatives and renewing core technology infrastructure, allowing banks to introduce new offerings and products much faster than using legacy platforms.â€ť
10x clients include Nationwide, the largest building society in the world, and Westpac, Australiaâ€™s first and oldest bank, which is preparing to launch a Banking-as-a-Service (BaaS) platform powered by the 10x SuperCoreâ„˘. 10x is working with top-tier banks globally and has recently begun working with a major bank in an additional geography to deliver a greenfield transformation project.
â€śOur investors are focused on industries that are going to be transformed by technology and companies that will be dominant players in that space,â€ť said Jenkins.
â€śWe look forward to scaling our business in delivering the cutting-edge approach our clients need to transform the way they enable their customers to bank, pay, buy and borrow.â€ť
Banks face an increasingly complex set of internal and external challenges and opportunities, which is driving change. Within banks these include the cost of managing and maintaining restrictive legacy technology stacks, fragmented data and the challenge of launching new products and services quickly. These external challenges and opportunities are compounded by competition and innovation disruption by incumbents and challengers, regulatory reform, low interest rates and capital requirements. Above all, customers are demanding financial services which match the usability of the other digital products that have become central to their lives.
Lazard acted as sole financial advisor to 10x. DLA Piper acted as legal advisor.
Investors in private markets have struggled with inefficient and manual processes.
Institutional investors are expecting more services from digital asset custodians.
The bank agreed to a civil penalty of $8m.
The Fintech Pledge promotes partnerships between financial institutions and tech scaleups.
Traders and portfolio managers will be able to manage their desktop real estate more efficiently.