Thought Machine raises £30m from unnamed tier 1 bank client as revenue passes $100m #

London-based core banking technology firm Thought Machine has raised £30 million ($41 million) from an unnamed tier 1 bank that is also one of its clients, as part of an enlarged funding package totaling £80 million, according to Tech.eu.

The £80 million figure includes an earlier £44.8 million round completed in July 2025, which Thought Machine did not publicise at the time. CEO and founder Paul Taylor said the company held back the announcement because it was intended to be part of a broader, combined fundraise. The identity of the tier 1 bank investor has not been disclosed.

Alongside the funding disclosure, the company reported that its revenues surpassed $100 million in 2025, a 57 percent year-on-year increase. Annual recurring revenue crossed the $100 million threshold in mid-2026. Thought Machine also turned free cash flow positive in the second half of last year and cut its pre-tax losses from nearly £70 million to approximately £12 million over the same period. Taylor attributed the narrowing losses to costs remaining broadly flat over the past four years while revenues climbed, helped by the growing size of individual client deals.

Thought Machine’s Vault platform charges clients a usage fee based on the number of live bank accounts running on the system. Taylor noted that banking clients “will start small with a few hundred thousand accounts live and they put more and more traffic through it,” with each new deployment adding to the revenue base. The company signed deals with a large Canadian bank and an Australian bank last year.

Taylor, who founded the company in 2014, was direct on valuation, saying he wants attention on “commercial success” rather than funding headlines or paper worth. The company’s last disclosed valuation stood at $2.7 billion following its 2022 Series D round.

On a potential stock market listing, Taylor pushed the timeline to at least 2028, citing difficult conditions for a London IPO, though he said he would “love to get the London stock market going again.” Thought Machine currently employs around 530 people and plans to hire more than 100 engineers in 2026 across London and a new Lisbon office. Despite being held up as a British technology champion, only around 15 percent of its revenue comes from the UK. The United States is now its single largest market.

Source: Tech.eu