Estonian FinTech company Modular Technologies OÜ (Tuum) has raised €1m in a funding round that was backed by AS LHV Group.
LHV will invest the money in a convertible bond which will be converted during the next funding round into shares.
This investment aims to bolster the partnership between the two firms. They first entered a partnership in October 2021, which saw Tuum gain access to LHV’s services, including real-time pound and euro payments, virtual IBANs, currency exchange accounts and more.
Tuum provides a cloud-agnostic core banking platform to financial companies. Its modules include banking core, deposits and savings accounts, assets and collateral, lending, accounting, payments, cards and debt management.
LHV Group CEO Madis Toomsalu said, “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.”
The company previously raised €15m in its Series A funding round in January 2022. The round was backed by BlackFin Capital Partners and Karma Ventures.
A number of Estonian FinTech companies have raised capital this year. Most recently, Income secured €1.3m in its seed round that was led by Tolaram Fintech. The company, which was founded in 2020, claims to be the first platform that offers secured investments in loans.
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