Estonian banking provider Tuum scores €15m funding round

Estonian core banking provider Tuum has scored a €15m funding round as it heralds a “more modular approach” to banking.

Tuum, previously known as Modularbank, serves all kinds of fintechs and financial services firms with core banking technology, and payments and accounts too.

Tuum CEO Vive Vene says banks and non-banks are increasingly seeing the worth of taking this “more modular approach to core banking” - which allows banks to tap into the broader fintech ecosystem - as it helps them “innovate at pace”.

Its €15m series A funding round has been led by new lead investor Portage Ventures, the venture capital outfit, which is joined by existing investors Blackfin Capital Partners and Karma Ventures.

The funding will initially be used to expand Tuum’s operations in the UK, including funding R&D efforts as well as plans to double the team to 140 employees by the end of 2022.

The funds will also be ploughed into international expansion, including markets beyond Europe.

Tuum was founded in 2019 and its customers include German money-laundering detection company, HAWK:AI and Nets Estonia, part of the European payments processor, the Nets Group.

In 2020, Tuum raised €4m in seed funding to open a new UK office and significantly ramp up its hiring.

Its rebrand last year was said to be in order to shift away from its ‘bank’ suffix and highlight that it no longer just serves banks, but rather the whole fintech ecosystem.

Vene added: "In three years, Tuum has become the core banking technology provider of choice for various financial institutions and non-financial companies, enabling them to innovate at pace and launch future-facing value propositions. 

“We are excited to have onboarded Portage Ventures as the lead investor of this round, who we see as a valuable partner in supporting our further growth and expansion plans.”