Tuum raises EUR25m series B financing, led by CommerzVentures, to fund product and market development
Tallinn, 6th February: CommerzVentures has led a €25 million Series B financing round in Estonian core banking provider Tuum.
CommerzVentures, the fintech venture arm of German bank Commerzbank, was joined in the round by Speedinvest and existing investors.Tumm last raised €1 million from client bank and BaaS component supplier LHV in April 2022.
Andreas Kitter, co-CEO of LHV UK, comments: “Bank executives are put off doing core replacements because of the costs and risks involved. With Tuum, we migrated millions of customers accounts in two months. We are now running a state-of-the-art core system with a small team and spending 75% of our IT budget on innovation.”
Formerly known as Modularbank, Tuum operates an API-first, cloud-agnostic and modular banking platform that covers all retail and business banking processes. The company boasts a customer base across 10 countries, with a pronounced presence in the UK, and Nordics. Over the last three years, Tuum's revenues have demonstrated a compound annual growth rate of over 250%.
Heiko Schwender, managing partner at CommerzVentures, says of the investment: “At CommerzVentures, we have been following and investing in the core banking market for a long time. While it’s hard to break into, this is a huge, highly attractive space, with over USD15bn in annual spending. Tuum’s standout modular approach is particularly suited to today’s ever-changing environment, offering a mature, yet flexible solution to a real pain point."
The fresh infusion of capital will bolster Tuum’s international presence, allowing it to target new territories in the DACH region, Southern Europe, and the Middle East, where it is opening a new office. The company will also increase investment into product development and to expand its suite of modules.
Myles Bertrand, CEO of Tuum, says: "No core banking vendor has to date made core migration simple and predictable, which is what Tuum is now doing through a combination of smart migrations, a modular and functionality rich core, massive extensibility, and a broad ecosystem of partners. With this Series B funding, we're not just expanding our reach: we're redefining the very essence of core banking for a digital-first future.”
