Commerzbank Amps Up Startup Investment with $8M for Mambu

canstockphoto9364580Commerzventures, the investment arm of Commerzbank, one of Germany’s largest banks, is no stranger to fintech startups.

Its activity puts most U.S. rivals to shame, and now the Frankfurt-based bank has established its venture funding strategy: invest in late-stage startups, and, if possible, co-lead Series B rounds, like the one it announced today for software-as-a-service banking platform Mambu.

Mambu began as a microfinance platform but soon grew into a full-featured, cloud-based core banking platform. Based in Berlin, Mambu was founded in 2011 and introduced its banking platform in 2013. The newest funding — around $8.7 million — will allow it to expand in Asia and the Americas, CEO Eugene Danilkis said in a press release. This raise dwarfs previous rounds for Mambu, and brings total funding to approximately $10.6 million.

The investment marks the second time Commerzbank has come in at the B round, according to Crunchbase. In the past year, the bank invested in a Series C round for payments platform Marqeta, a Series A round for insurancetech company Safe, a Series B for SME financing startup Iwoca, and an unspecified round for social investment platform eToro. (Obviously, this was a late-stage investment round.) That marks five fintech investments in the past year for the bank. It would be difficult to find a commercial bank that has done more fintech investing in the last year.

Commerzbank’s ties to fintech innovation run even deeper. It is after all the parent company of Lodz, Poland-based mBank, one of the world’s most advanced (and popular) mobile-first bank platforms.

“We see Mambu as the next generation of banking platforms and cloud technology with huge potential to fill a significant need in the market,” said Stefan Tirtey, managing director at CommerzVentures. “Mambu has rapidly evolved to be an industry-leading modern, cloud-based banking system that is opening up new opportunities for digital-first banking and is well-positioned as a disruptive challenger to traditional and legacy banking systems.”

Munich-based Acton Capital Partners also participated in the round.

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