- TrueLayer secured an additional $50 million in funding, bringing its Series E round total to $180 million.
- TrueLayer’s valuation has dropped to $700 million from its peak of $1 billion in 2021.
- Despite the downround, TrueLayer remains optimistic about its future, stating its intentions to work toward profitability.
Open banking platform TrueLayer is proving that it is not just AI companies that are receiving VC investor attention. The London-based company recently received a $50 million extension of its $130 million Series E round.
Today’s follow-on round was led by existing investor Northzone with contributions from Tencent Holdings, Tiger Global, Temasek Holdings, and Stripe. According to Bloomberg, the recent round reportedly values TrueLayer at $700 million, which is notably lower than the $1 billion valuation the company received during its 2021 Series E round.
Despite TrueLayer’s recent raise being a downround—reflecting a valuation drop of $300 million—this trend has been common across the fintech sector in recent years. TrueLayer remains optimistic, viewing the new funding as a vote of confidence in its future growth and ability to achieve profitability. “Separately to this fundraise, we have taken important steps to chart our path toward profitability. This funding is yet another vote of confidence in our company, our technology,” said TrueLayer CEO Francesco Simoneschi.
Founded in 2016, TrueLayer offers an open banking payments network that processes $40 billion across 120 million transactions annually. The company has 10 million users located among 21 European countries. In addition to its payments and payouts products, TrueLayer also offers Signup+, a streamlined onboarding tool, and VRP, its variable recurring payments tool.
TrueLayer appointed its first Chief Strategy Officer, Lisa Scott, earlier this year. The company has raised a total of $321 million. Francesco Simoneschi is Co-founder and CEO.
TrueLayer, which counts Revolut, Coinbase, and Robinhood among its clients, is well-known for facilitating pay-by-bank transactions. Pay-by-bank has seen increased interest among merchants, as they have multiple benefits in comparison to credit card payments. The benefits include fewer fees, faster settlement, and reduced chargebacks. While there has been some movement in pay-by-bank usage in the U.S., pay-by-bank has seen more growth in Europe where open banking is regulated and consumers don’t rely on credit cards as much.