Capitolis, which develops tech for banks and financial institutions, raised $220M, including a $120M Series E at a $1.9B valuation, up from $1.6B in 2022 (Meir Orbach/CTech)

Capitolis, a leading fintech company specializing in technology for banks and financial institutions, has successfully raised $220 million in new financing. This includes a significant $120 million Series E round, which has propelled Capitolis' valuation to an impressive $1.9 billion. The previous funding round occurred in 2022, when the company was valued at $1.6 billion.

The most recent round was led by existing investor Citi, and included strategic investors such as Bank of America, Nomura, and Tradeweb Markets. Other notable investors in the round were Barclays, BNP Paribas, J.P. Morgan, State Street, and UBS. The financing also includes debt financing provided by First Citizens Innovation Banking, formerly Silicon Valley Bank, Hercules Capital, and Pinegrove Venture Partners.

Capitolis' founder and CEO, Gil Mandelzis, explained the decision to combine equity and debt financing, stating that debt is more cost-effective for the company, especially as they anticipate generating substantial cash flow soon. The majority of the raised funds will be allocated towards the company's recent acquisition of eSecLending, a deal announced last week.

Mandelzis anticipates that the combined company will achieve significant revenue this year, with even greater growth expected in the following year. The eSecLending acquisition will expand Capitolis' financial resource optimization platform and its access to a network of institutional asset owners. The new financing round not only brings substantial capital but also adds several of the world's largest financial institutions to Capitolis' shareholder base, including Bank of America, Nomura, and Tradeweb Markets.