The French startup TagPay has raised €25 million in its latest funding round led by Long Arc Capital, an American private equity firm based in New York. Long Arc will use its resources to help TagPay, including strategic advice, human capital, expertise on product and technology development topics, as the startup continues to help financial institutions with its complete suite of scalable and open Core Banking System technology.
TagPay is on a mission to transform the legacy Core Banking System (CBS), often considered as expensive and slow, into scalable technology platforms with an open architecture and low total cost of ownership.
With a quick-release speed, its solution provides everything players need in business features (KYC, AML-CFT, General Ledger, etc.) and customer features (account management, card management, SEPA, etc.). Its CBS allows financial institutions to become agile and scalable players with better innovation abilities, so they can focus on building their offerings and the distribution of their financial products.
Since its launch in 2016, more than twenty financial institutions (retails banks, digital banks, payment institutions, and e-money institutions) have chosen TagPay to support them in their digitization. TagPay is also well-established in 3 continents: Africa, LATAM, and Europe.
With this funding, the company aims to go further to accelerate its growth in the European market, extend its customer base to around fifty financial players, and to manage bank accounts for over 30 million end-customers, while adapting to the local specificities of different markets.
Vincent Fleury, Partner at Long Arc, commented: “As financial institutions begin to see the benefits of next-generation Core Banking Systems, TagPay is demonstrating their full potential by offering a configurable and connectable banking environment that meets the highest security standards. We are delighted to support them in this new phase of growth”.