MICROCAPITAL BRIEF: Fintech Mambu Secures $265m in Equity Funding Round Led by EQT to Expand Core Banking Platform for Microfinance, Other Institutions

Mambu, a German software-as-a-service (SaaS) banking platform founded in 2011, recently raised EUR 235 million (USD 265 million) in Series E funding, valuing the firm at EUR 4.9 billion (USD 5.5 billion). EQT Growth, a Sweden-based private equity investor, led the funding round. EQT Growth is a first-time investor in Mambu and is joined by previous investors Acton Capital Partners, Arena Holding, Bessemer Venture Partners, Runal Capital, TCV and Tiger Global. FT Partners, a US-based investment banking firm, acted as financial advisor to Mambu.

According to Eugene Danilkis, CEO and Co-founder of Mambu, the firm “will use its fresh funding to further accelerate innovation in its next-generation platform [and] further support its international customer base, which is active across 65 countries today.”

Mambu’s cloud technology is deployed at 200 banks, microfinance institutions, financial technology firms (fintechs) and other financial companies that together serve approximately 50 million customers.

EQT Growth, which generally invests in amounts from EUR 50 million (USD 56 million) to EUR 200 million (USD 225 million), is a unit of EQT Group. The group was founded in 1994 in Sweden and reports that its portfolio companies generate yearly average revenue growth of 12 percent and 13 percent growth in earnings before interest, tax, depreciation and amortization (EBITDA). As of December 2020, EQT Group had EUR 1.6 billion (USD 1.8 billion) in total assets, and the 11 funds under the group’s private capital business segment had a total volume of EUR 33 billion (USD 37 billion).

By Zachary DeLuca, Research Associate

Sources and Additional Resources

Mambu press release
https://www.mambu.com/insights/press/mambu-raises-eur235-million-at-eur4-9-billion-valuation-in-eqt-growth-led-series-e

Mambu homepage
https://www.mambu.com/

EQT Growth webpage
https://eqtgroup.com/private-capital/growth

EQT Group homepage
https://eqtgroup.com/

EQT Group annual report 2020
https://cdn.sanity.io/files/30p7so6x/eqt-web-prod/2fa693269b1919a22c3b990be41b8015fc161175.pdf

FT Partners homepage
https://www.ftpartners.com/

Acton Capital Partners homepage
https://actoncapital.com/

Arena Holdings homepage
https://arenaholdings.com/

Bessemer Venture Partners homepage
https://www.bvp.com/

Runal Capital homepage
https://runal.com/