Mambu using €8M for global expansion

Software-as-a-Service (SaaS) banking platform provider Mambu has successfully completed an €8 million funding round led by Acton Capital Partners and CommerzVentures. Existing investors also participated.

Mambu CEO Eugene Danilkis said the new funding is earmarked toward a global expansion which will include Asia and the Americas to start. It will help them capitalize on the momentum they generated in 2015 which included a tripling in year over year growth and a quadrupling of its portfolio.

Mambu's Eugene Danilkis knows social media patterns can play an important role in risk assessment

Mambu’s Eugene Danilkis.

Those achievements, along with 30 new customers and new functionality for its SME and P2P methodologies, convinced the company it was a good time to grow, Mr. Danilkis said.

“We wanted to start looking for some additional growth financing, get out of the product inbound phase and into more of a marketing presence,”

Mr. Danilkis said it helps the participating investors have solid familiarity with Mambu and the space. CommerzVentures is the corporate venture capital fund of Commerzbank AG, an international commercial bank with locations in more than 50 countries and annual revenue of close to €9 billion. CommerzVentures prioritizes global fin-tech firms with a focus on Europe. Their 2015 investments include eToro, iwoca, MARQETA, and GetSafe.

“CommerzVentures knows the space well,” Mr. Danilkis said. “They are excited to work with us.”

CommerzVentures Managing Director Stefan Tirtey likes Mambu’s positioning.

“We see Mambu as the next generation of banking platforms and cloud technology with huge potential to fill a significant need in the market. Mambu has rapidly evolved to be an industry-leading modern, cloud based banking system that is opening up new opportunities for digital-first banking and is well positioned as a disruptive challenger to traditional and legacy banking systems.”

mambuMambu works effectively with both well established banks and new fin-techs. That was one of the reasons Acton Capital Partners participated, Mr. Danilkis said.

Based in Munich, Acton Capital Partners is a growth equity fund focusing on Internet-related companies. Like CommerzVentures, Acton also looks globally while focusing on Europe. Etsy is one of the more than 60 companies it has invested in since 1999.

“The FinTech landscape is rapidly evolving and with investment in this space at a high the industry is seeing an increase in opportunities across all geographies and banking verticals,” said Fritz Oidtmann, Managing Partner at Acton Capital Partners. “We were impressed with Mambu’s position as a global FinTech platform player with great potential as the platform-of-choice for emerging FinTech companies and as an engine for innovation for the established organizations.”

More people are realizing the financial sector is going through a truly revolutionary period, Mr. Danilkis said.

“Banks are being legitimately challenged for the first time ever.”

The biggest challenge to date may have come from credit unions and smaller banks, Mr. Danilkis added. Now the big banks need to realize they face well-funded and rapidly growing competition which Mambu is perfectly positioned to serve.