Thought Machine lands £45m funding round after losses widen
Thought Machine has sealed a £45m funding round after the London fintech reported widening losses.
The funding was secured in July, according to fresh Companies House filings seen by City PM, but the firm had not previously disclosed the investment.
Thought Machine said it obtained the cash from its existing investor base.
“The funding supplements the company’s cash position and will be used to finance the company’s growth and in particular continued investments in its product development,” the firm said in a statement.
Thought Machine did not respond to a request for comment as to whether or by how much its valuation had declined following the round.
In December, investor Molten Ventures cut the estimated value of its stake in the fintech by nearly 40 per cent.
Thought Machine’s valuation hit $2.7bn (£2bn) in May 2022 after a $160m funding round featuring institutional investor Morgan Stanley.
In its accounts, the company reported turnover of £47.6m for 2024, a drop of 0.4 per cent on last year, while losses widened by 20.6 per cent to £71.2m.
The total number of employees at the firm was cut by 12.4 per cent to 523 during the year, the filing showed.
Listing ambitions
Founder Paul Taylor previously told City PM Thought Machine was “definitely going to IPO” and gave his clearest public indication yet that the capital is management’s preferred destination.
“London is our home, and all other things being equal, we’d be very keen to list in London,” Taylor, a former Google executive, said.
“But it’s not just a decision that only I can take – our existing investors would have a strong voice in that,” he continued, adding that many other UK companies have ultimately opted to float in the US. “There’s a lot of momentum behind New York.”