Singapore state investor Temasek has led a $160-million Series D funding round in UK-headquartered cloud-native banking technology company Thought Machine, to support the latter’s expansion in the Asia Pacific.

The round also saw participation from Intesa Sanpaolo and Morgan Stanley, as well as existing investors including Eurazeo, ING, JPMorgan Chase, Lloyds Banking Group, and SEB.

The Series D investment valued the startup at $2.7 billion – a 100% increase from the company’s valuation at the close of its Series C round in November 2021, Thought Machine said in a statement.

The company has raised more than $500 million in total.

“Funds from this investment round will continue the company’s expansion plans in the Asia Pacific, growing in markets such as Vietnam, Thailand, Indonesia and the Philippines,” the company said. It has recently opened a new office in Sydney to expand its operations in Australia, while its existing office in Asia is located in Singapore.

In Southeast Asia, Thought Machine has clients such as Vietnam’s HDBank and Shariah-compliant Al Rajhi Bank Malaysia. Its global clients include Intesa Sanpaolo, Lloyds Banking Group, ING, SEB, and Standard Chartered, among others.

The company said Asia’s over 20-year-old core banking technology demonstrated a great opportunity for its cloud-native technology in the region.

Thought Machine’s core banking platform Vault Core – developed natively for the cloud – helps banking incumbents undertake core transformation, as well as smaller banks and fintech businesses launch new propositions to the market.

Lloyds Banking Group, an early investor in Thought Machine, has extended its licence agreement with the company until 2029.

Since the start of this year, Temasek has led a spate of investments in businesses outside Asia, including a €60-million ($70 million) Series B round in Austrian hydration company waterdrop, a $68-million financing for US-based bioscience company Brightseed, and American cultivated meat company Upside Foods’ $400 million round. Temasek has also recently backed Bahamas-based cryptocurrency exchange FTX.

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