The Mambu boss founded the fintech together with Frederik Pfisterer and Sofia Nunes in 2011.
(Photo: Mambu)
Düsseldorf, Frankfurt The Berlin financial technology start-up Mambu is now valued by investors at EUR 4.9 billion after inflow of funds. In the E-series financing round led by the growth fund of the equity investment company EQT, Mambu will receive 235 million euros. Mambu plans to put the money into innovations for its banking platform and expand its global presence, the company announced on Thursday.
The company offers special software for banks that are used by fintechs such as Neobank N26 and Solarisbank, as well as established banks such as Santander and companies such as Check24. It benefits from the boom in financial technology.
According to company documents available to the Handelsblatt, the valuation is based on projected sales of 165 million US dollars (Contracted Annual Recurring Revenue) based on orders for the year 2022. The core market is estimated at 15 billion US dollars, Mambu’s market share to one percent.
The growth is strong, however. Mambu’s annually recurring sales are growing by 87 percent. The gross margin is 70 percent.
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It was only at the beginning of the year that the company had raised 110 million euros in venture capital. Existing investors include TCV, one of the world’s largest tech investors, as well as Tiger Global and Bessemer Venture Partners. At that time, the valuation was 1.7 billion euros.
Mambu was founded in 2011 by Eugene Danilkis, Frederik Pfisterer and Sofia Nunes. In a German comparison, Mambu now ranks fifth among the most valuable start-ups behind the Munich process analyst Celonis, the bank N26, the personnel software provider Personio and the online broker Trade Republic.
No other sector is booming in 2021 as much as the fintech sector
The $ 41 billion IPO of Nubank also shows how much imagination there is in the sector. The digital bank had reduced the price range for its shares by 20 percent to eight to nine dollars last week. But with the issue price of nine dollars set on Wednesday evening at the upper end of this range – the IPO flushes around 2.6 billion dollars into Nubank’s coffers – it is still valued at an impressive 41 billion dollars after the IPO.
The bank also wants to ensure its success by ensuring that almost half of the 289 million shares placed on Wall Street, valued at around $ 1.3 billion, will go to anchor investors, such as the prominent private equity firms Sequoia Capital, Tiger Global and Softbank.
Nubank is the most ambitious listing candidate from the Neobank camp worldwide – and a successful new issue by the Brazilians could become a reference for the entire industry.
Five of the ten largest financing rounds in Europe won financial technology companies in 2021. With Klarna ($ 45.6 billion), Revolut ($ 33 billion) and Checkout.com ($ 15 billion), the three most valuable startups in Europe are fintechs. The most valuable German fintech company is Neobank N26 with a valuation of nine billion dollars.
There was another deal in Europe this week. Danish fintech Pleo is valued at $ 4.7 billion after expanding its latest financing round. $ 200 million had been collected from investors such as Coatue Management and Alkeon Capital, said the provider of expense accounting solutions via company cards on Thursday. This increased the Series C round to $ 350 million.
Pleo boss Jepp Rindom wants to put the fresh money for the start-up founded in Copenhagen in 2015 into European expansion and employees. Pleo wants to be active in more than 20 countries by 2023 – currently there are six countries, including Germany.
Dusseldorf fintech Collenda probably put up for sale
Investors are currently ready to pay a lot of money for growth. While Mambu is aiming for a rating of almost 30 times its annual turnover, according to financial circles, another German financial software company, which is not growing, is apparently only three times smaller.
According to financial circles, financial investor Marlin Equity has put the company Collenda from near Düsseldorf up for sale. The sales of the provider of software for credit and receivables management were 25 million in 2019 and 2020 and is expected to increase to 26 million this year. A valuation of significantly less than ten times sales is expected, as people familiar with the matter have said. One person even put the valuation at less than 100 million. In view of the low growth, the interest from other financial investors is rather low. Marlin and Raymond James were initially unavailable for comments.
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