LHV Group to Invest €1m in Tuum
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.