A global open banking platform based in London, TrueLayer, makes it easy for anyone to build better financial experiences. Now, the company announced that it has pocketed $130 million (nearly £95 million) in a funding round, which gives it a post-money valuation of over $1 billion, thereby making it a unicorn.
The investment round was led by New York-based tech investor Tiger Global Management LLC along with participation from Stripe, a global payments technology provider. TrueLayer will use the proceeds of this round to further scale its business and offer the benefits of instant bank payments to more markets as well as sectors.
Also, it will focus on continued product development and innovation, including PayDirect. The funds will also let the company continue its geographic expansion and strengthen its product, engineering and commercial teams worldwide.
“When Francesco and I founded TrueLayer it was with a belief that open banking would act as a catalyst for fundamental change in financial services. I’m incredibly proud of how we’ve built the firm, with a focus on quality engineering and user experience aligned to product development that delivers the best possible services,” commented Luca Martinetti, co-founder and CTO at TrueLayer. “That is reflected in the thousands of developers using our services, the talent we are retaining and the calibre of leaders we’re attracting from world-class technology and fintech companies. Our people buy into the vision for what we’re building and the journey ahead. It’s also reflected in the quality of our investors who believe in our ambition and are as excited as us about what comes next.”
Alex Cook, Partner, Tiger Global, said: “The shift to alternative payment methods is accelerating with the global growth of online commerce, and we believe TrueLayer will play a central role in making these payment methods more accessible. We’re excited to partner with Francesco, Luca and the TrueLayer team as they help customers increase conversion and continue to grow the network.”
Launches PayDirect solution and more
In addition to the latest investment round, TrueLayer announced the launch of its PayDirect solution, Verification API, and Payouts solution. Also, it received its full EU authorisation from the Central Bank of Ireland and establishing its European HQ in Dublin.
Francesco Simoneschi, CEO and co-founder of TrueLayer, commented: “TrueLayer is carving a new world of payments altogether, which can deliver a fundamentally faster, safer and more user friendly experience that also improves conversion and delivers higher revenues for merchants. We are leading this innovation through instant deposits and withdrawals, and merging Variable Recurring Payments and Direct Debit to build ‘account on file’ services on top of our open banking network. There is an opportunity to rewire the financial system from the ground up and we are leading that evolution through open banking payments.”
Open banking pioneer
TrueLayer, founded by Luca Martinetti and Francesco Simoneschi in 2016, has processed billions in payments, experiencing 400 percent growth in monthly payment volume and 800 percent growth in monthly payment value as the company expanded across Europe and doubled its customer base.
On average, 1 in 3 people already choose to pay via technology powered by TrueLayer. Some merchant partners such as Revolut, Cazoo, and Freetrade claim that over 70 percent of their customers choose to pay securely with their bank account over cards or digital wallets.
TrueLayer’s network provides over 95 percent coverage across the UK and major European markets and accounts for more than half of all open banking traffic in the UK, Ireland, and Spain. Its API-first approach helps customers to seamlessly pay, onboard, and share financial information in seconds, garnering a reputation as the technology provider behind many of the most valuable fintechs and cutting-edge businesses.