FintechOS raises USD $28 million to fuel US expansion

FintechOS has raised USD $28 million in combined equity and debt financing from existing shareholders and a senior debt facility from Santander CIB.

The round included backing from Bek Ventures, IFC, Cipio Partners and Molten Ventures. The new capital will support expansion in the United States, deepen the client base in Europe and broaden the delivery practice around its AI-native platform.

The fundraising follows a period in which FintechOS reached profitability while increasing recurring revenue by 40% year on year in the first half. US market growth reached 130% over the same period.

Operational EBITDA rose by more than 102% year on year, helped by higher gross margins. More than 20 financial institutions worldwide are expected to adopt its FintechOS 8 platform this year.

FintechOS sells software to banks, insurers and other financial services groups in the US and Europe. Its customers include US credit unions and banks, as well as established financial institutions in several European markets.

In the US, customers include ESL Federal Credit Union, Vibrant Credit Union, Hanscom Federal Credit Union, Farmers Bank of Willards and MHG Insurance. In Europe, FintechOS cited BRD Groupe Société Générale, Admiral, CEC Bank, Howden, Bankinter and Groupama among its clients and partners.

US push

FintechOS is placing particular emphasis on the US, which it described as its fastest-growing market over the past year. It is appointing a new chairman and additional board directors in the US as it looks to expand its presence and develop strategic partnerships in the region.

The company is targeting more than 200% year-on-year growth in the US over the next 12 months. That effort will build on links with Finxact, part of Fiserv, and Finastra Phoenix, both of which provide core banking technology to US financial institutions.

FintechOS is also consolidating its position in Europe, adding customers in the UK while maintaining relationships with larger banking and insurance groups across the region. The two-track approach points to a strategy of expanding in the US without pulling back from more established markets closer to its European base.

Delivery model

Alongside the financing, FintechOS outlined a new delivery approach built around small client-facing teams. Each team will include a technical consultant and an engineer working directly with client product teams to configure and launch services on the platform.

The model is intended to replace a more distant implementation process. FintechOS says closer collaboration with clients can shorten launch times and reduce overall deployment costs.

Its platform also allows non-technical users to configure products and offers directly through Dex, its AI copilot. FintechOS presents that feature as part of a broader effort to change how financial institutions design, launch, price, originate and service products through a single operational workflow.

Recent performance has given the company scope to seek fresh capital from existing investors rather than bring in a broader new shareholder group. By combining equity with debt, FintechOS is adding funds while preserving support from backers already invested in the business.

Cyril Desouza, Chief Financial Officer at FintechOS, commented on the company's financial position: "Reaching profitability was not an accident, it was the outcome of a deliberate, multi-year effort to get our cost base, our margins and our delivery practice right before we pushed harder on growth again.

"Now that discipline is paying off twice over: the business has reached profitability, and we've already made the shift back into high growth, which is exactly the combination that lets us take on a round like this one."

Teo Blidarus, Founder and Chief Executive Officer of FintechOS, linked the financing to the company's next stage of expansion: "Growth and profitability go hand in hand, not at the expense of one another.

"Santander CIB's support, alongside other investors that trust us, is a strong vote of confidence in the path we're on, and it gives us the capital to go after the extraordinary potential we see ahead, particularly in the US, without compromising the discipline that got us to profitability in the first place."