Capitolis, a fintech company that builds cloud‑native solutions for banks and financial institutions, closed a $220 million financing round on Tuesday. The deal included a $120 million Series E, bringing the company’s valuation to $1.9 billion. Investors such as Sequoia Capital, Accel, and Goldman Sachs participated, while existing backers like Insight Partners and Bessemer Venture Partners increased their stakes.
The new capital will accelerate the development of Capitolis’ „Banking‑as‑a‑Service” platform, which automates core banking functions, regulatory reporting, and data analytics. The company says the funding will help expand its data‑center footprint, enhance security compliance, and grow its sales team in Europe and Asia. Capitolis’ CEO, Daniel Kahn, said the round „positions us to deliver next‑generation banking capabilities to institutions that need to modernize quickly.”
Capitolis’ platform is built on a microservices architecture that allows banks to deploy services in public clouds with minimal downtime. The company claims its solution reduces the time to launch new products from months to weeks, and cuts operational costs by up to 30 percent. Its clients include mid‑size banks in the U. S., Germany, and Singapore, many of which have struggled to keep pace with fintech competitors.
„Financial institutions are under pressure to innovate while maintaining strict regulatory compliance,” said Kahn. „Our platform gives them the agility of a startup and the reliability of a core banking system.” The company’s recent partnership with a leading cloud provider will enable instant scaling during peak transaction periods, a feature that banks cited as critical during the 2025 holiday season.
Industry analysts note that Capitolis is part of a growing wave of „core banking as a service” firms that promise to replace legacy mainframes. The company’s valuation of $1.9 billion places it among the top fintechs in the region, but some experts warn that the market is becoming crowded. „There are many players offering similar services,” said a senior analyst at a boutique research firm. „Capitolis will need to differentiate through customer experience and regulatory expertise.”
Despite the competition, Capitolis has secured contracts with several national banks that have committed to a full migration by 2027. The company’s focus on data security, including end‑to‑end encryption and automated backup for Office 365, Google Workspace, and Salesforce, addresses a key pain point for regulators. „Data loss can cost banks millions in fines and reputational damage,” Kahn added.
With the new funding, Capitolis plans to open a data center in Tokyo and launch a dedicated sales office in Paris. The company also intends to invest in artificial‑intelligence tools that will provide real‑time fraud detection and credit scoring. „AI will be the next layer of value we add,” said Kahn. „It will allow banks to offer personalized products while staying compliant.”
The company’s growth strategy hinges on long‑term contracts and recurring revenue. Capitolis expects its ARR to double over the next 18 months, driven by upsells to existing clients. The leadership team believes that the combination of cloud agility, regulatory readiness, and AI capabilities will secure its position as a preferred partner for banks looking to modernize.
What is Capitolis’ core product? Capitolis offers a cloud‑native banking platform that automates core banking functions, regulatory reporting, and data analytics, allowing banks to deploy services quickly and securely.
Who are Capitolis’ main competitors? The company competes with other core banking‑as‑a‑service providers such as ThoughtSpot, Mambu, and FinTech Solutions, all of which aim to replace legacy mainframes.
How will the new funding be used? Funds will expand Capitolis’ data‑center footprint, enhance security compliance, add AI features, and grow its sales and engineering teams in key markets.