CommerzVentures has led a €25 million Series B financing round in Tuum, an Estonian core banking provider. The fintech venture arm of German bank Commerzbank participated alongside Speedinvest and existing investors in this funding round.
Previously, Tuum raised €1 million from client bank and BaaS component supplier LHV in April 2022. Andreas Kitter, co-CEO of LHV UK, noted the challenges banks face when considering core replacements due to their costs and risks. However, with Tuum’s solutions, they successfully migrated millions of customer accounts in just two months. This achievement has allowed them to operate a state-of-the-art core system with a minimal team, directing 75% of their IT budget towards innovation.
Formerly known as Modularbank, Tuum offers an API-first, cloud-agnostic, modular banking platform that encompasses all retail and business banking processes. The company serves a customer base across 10 countries, with a strong presence in the UK and Nordics, and has achieved a compound annual revenue growth rate of over 250% in the last three years.
Heiko Schwender, managing partner at CommerzVentures, commented on the investment, stating that they have monitored the core banking market for an extended period. He highlighted the lucrative nature of this sector, which sees over USD 15 billion in annual spending. Tuum’s modular approach is particularly well-suited for today’s dynamic environment, providing a mature and flexible solution to a significant challenge.
The new funding will enhance Tuum’s international footprint, enabling it to expand into new regions such as the DACH area, Southern Europe, and the Middle East, where it plans to establish a new office. Additionally, the company will increase its investment in product development to broaden its range of modules.
Myles Bertrand, CEO of Tuum, remarked that no current core banking vendor has made core migration simple and predictable. With this Series B funding, Tuum aims to revolutionize core banking for a digital-first future by leveraging smart migrations, a rich modular core, extensive adaptability, and a wide network of partners.