Estonian core banking provider Tuum bags €25m as targets DACH and Middle East

Estonian core banking provider Tuum has raised  €25 million, as it looks to target new territories in the DACH region, southern Europe and the Middle East.

The Tallinn-based startup was set up in 2019 by Estonian IT professionals which had helped digitise major Nordic banks.

Tuum targets legacy IT systems used by financial services providers, saying they are antiquated and that Tuum’s cloud-based core banking platform is superior, allowing banks, fintechs and other financial institutions to launch new products quickly and hassle-free.

The Series B financing round was led by CommerzVentures, the specialist VC fund, with funding also coming from Speedinvest, the early-stage European VC, alongside existing investors.

The funds have been earmarked to fund product and market development, with expansion planned across the DACH region, southern Europe, and the Middle East, where it plans to open an office.

It will also use the funds to boost its product offering, including providing a more tailored offering, which it says is an alternative to the “generic one size fits all or toolbox approaches of other cloud-native” providers.

Tuum, which was previously called ModularBank but rebranded in 2021 to Tuum which means “core” in Estonian, says it now has customers in 10 countries, with a strong presence in the UK and the Nordics.

In 2022, Tuum secured a €1 million investment from one of its biggest clients, LHV Group.

Myles Bertrand, CEO of Tuum, said:

“No core banking vendor has to date made core migration simple and predictable, which is what Tuum is now doing through a combination of smart migrations, a modular and functionality-rich core, massive extensibility, and a broad ecosystem of partners. With this Series B funding, we're not just expanding our reach: we're redefining the very essence of core banking for a digital-first future.”