The fintech startup of former Barclays chief executive Antony Jenkins has raised a fresh round of capital, bringing on board asset manager BlackRock as a new investor among a throng of familiar faces.
BlackRock co-led the $187m series C financing round into 10x Future Technologies alongside pension fund CPP Investments. Existing investors JPMorgan, Nationwide, Ping An and Westpac also participated.
Jenkins’ London-based firm is developing cloud-based technology to help banks transition away from outdated core back-end systems, as major financial institutions struggle to innovate at the pace of younger and more nimble rivals.
“This funding round represents another significant milestone in our journey to become the operating system of choice for leading banks across the globe,” said Jenkins in a 16 June statement.
“Our vision is to reliably support more than 1bn of their customers within the next 10 years.”
The startup said it will use the cash to support its expansion to North America, where a patchwork network of banks across state and federal lines are attempting to keep up with digital challengers such as Chime, Varo Money and Square’s Cash App.
Some of 10x’s investors are already clients of its services, including Nationwide and Westpac. The startup said it had also recently begun work with “a major bank in an additional geography”.
In the most recent accounts filed to Companies House, 10x posted a £4.4m pre-tax loss for the 2019 financial year. This had narrowed from a loss of £19m a year earlier. Jenkins founded the company in 2016, a year after he exited Barclays.
Leon Pedersen, managing director of CPP Investments, said 10x presented “an attractive opportunity for a long-term investor like CPP”.
“10x is very well placed to change how big banks are built and deliver for their customers… 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,” Pedersen said.
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