LHV Group to invest in fintech company Modular Technologies OÜ
April 25 2022 - 1:00AM
LHV Group to invest in fintech company Modular Technologies OÜ
AS LHV Group will make an investment worth EUR 1 million in the
Estonian financial technology company Modular Technologies OÜ,
trademark ‘Tuum’. The company developing a new generation banking
platform offers the core system also to LHV UK Limited, a
subsidiary of LHV Group.
LHV will invest the EUR 1 million in a convertible bond, that as
to the agreement will be converted during the next funding round
into shares according to the conditions of the A round funding. The
financial impact of the investment is directly related to the
increase in the value of the company, the investment is not
included in LHV's existing financial plan.
LHV’s investment is a step towards strengthening the partnership
between the two companies and further promoting their common
interests. In October 2021, LHV and Tuum entered into a
partnership, under which Tuum gained access to LHV's services, such
as the opportunity to provide customers with real-time pound and
euro payments, virtual IBANs, currency exchange accounts and
currency exchange transactions. In March 2022, LHV selected the
Tuum platform as the core system for its new bank currently
developed in the United Kingdom.
"For LHV, this is an investment that will help us combine our
own interests with a strategically important partner and further
strengthen our position among financial technology companies.
Together with Tuum, we can give fintech start-ups and companies
operating in other fields the opportunity to enter the market with
new flexible financial products more easily and faster," commented
Madis Toomsalu, CEO of LHV Group.
Tuum is a fast-growing start-up company that offers financial
companies a cutting edge banking platform. Their customers can
assemble a core system that caters to their specific needs from
different cloud-based modules. Tuum’s customers include banks
and other fintech companies, such as Nets, Multitude Group and
others in addition to LHV UK Limited. As recently s January, Tuum
raised a total of 15 million euros from investors in the A funding
round.
LHV Group is the largest domestic financial group and capital
provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV
Varahaldus, and LHV Kindlustus. LHV employs over 700 people. As at
the end of March, LHV’s banking services are being used by 337,000
clients, the pension funds managed by LHV have 135,000 active
clients, and LHV Kindlustus is protecting a total of
147,000 clients. LHV’s UK branch offers banking infrastructure
to 200 international financial services companies, via which LHV’s
payment services reach clients around the world.
Priit RumLHV Communication ManagerPhone: +372 502 0786Email:
priit.rum@lhv.ee
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