London-based open banking firm TrueLayer has closed a $130 million fundraise led by Tiger Global Management.
Stripe, the payments firm recently valued at $95 billion, also invested in the round, according to an announcement.
The raise gives TrueLayer a valuation of over $1 billion, vaulting the startup to ‘unicorn’ status. The firm last raised money as recently as April this year, in a $70 million round led by Addition.
TrueLayer offers tools that help companies take advantage of the United Kingdom’s open banking framework, a regulatory structure that compels banks to expose the transactional data they hold to third parties via APIs.
The scheme also enables bank-to-bank payments, which have the potential to cut out the card networks. Crypto companies, in particular, have sought to use this route to create smoother onboarding experiences for customers.
The payments piece of open banking has been a boon to TrueLayer. In 2021, the startup has exhibited 400% growth in monthly payment volume and 800% growth in monthly payment value, according to a press release.
“There is only so long that global business can rely on systems that are outdated, expensive and not fit for the digital age,” said Francesco Simoneschi, CEO and co-founder of TrueLayer, in a statement. “TrueLayer is carving a new world of payments altogether, which can deliver a fundamentally faster, safer and more user-friendly experience that also improves conversion and delivers higher revenues for merchants.”
The $130 million will be used to scale the business, for product development, hiring and geographic expansion.