Funding Image Source Pixabay/Geralt under CCO https://pixabay.com/en/dollar-money-us-dollar-arrangement-1443244/Quantexa, the decision intelligence vendor, has raised $129 million in a series E funding round led by GIC, a global institutional investor. Other participants included existing investors Warburg Pincus, Dawn Capital, British Patient Capital, Evolution Equity Partners, HSBC, BNY Mellon, ABN AMRO, and AlbionVC. The funding round also saw the UK headquarters company achieve a valuation of $1.8 billion.

It sets it up to make further inroads into the decision intelligence category market, which Qunatex estimates is worth around $230 billion. This is well above the still huge amount forecasted by Reportlinker.com, which sees the market reaching $26 billion by 2028.

The last funding round, its Series D, raised $153 million and was led by Warburg Pincus in July 2021 after attaining 108% growth during 2020/21. This latest round follows further growth worldwide, with its penetration of the US market noteworthy with ARR growth of over 180%. However, it did not share any figures.

The funding comes after it closed the books on March 31st for its 2023/23 full year. It has not yet published any details. In May 2022, it revealed the US was 30% of revenues, which makes the revenue growth in North America over the last year impressive.

The company continues to extend its portfolio of technology as well. Most recently, with the acquisition of the natural language processing and AI-Based Risk & Market Intelligence solutions provider Aylien.

The funding will help Quantexa accelerate its global expansion. Its employee base has grown from 500 to 650, and it has opened new offices in New York City, the UAE, and Amsterdam. It also opened a new Technology and Analytics Hub in Malaga Tech Park, Spain, in November 2022. It will also invest in the platform.

Growth across the private and public sector

Quantexa has a growing list of enterprise customers. It was also chosen by the Crown Commercial Service (CCS) to be a supplier for its Big Data and Analytics procurement framework. It also lists the Public Sector Fraud Authority in the UK Cabinet Office. Enterprise customers include BNY Mellon, HSBC, Standard Chartered, Danske Bank, and Vodafone.

Bill Winters, Group Chief Executive, Standard Chartered Bank, commented, “Quantexa’s AI platform will allow us to conduct complex thematic investigations more efficiently and effectively, demonstrating our ongoing commitment to upholding the highest global standards in compliance and risk management.”

It will continue to target sectors such as Banking, Insurance, Government and Telecommunications with investment in its go-to-market alongside partners such as Google, Moody’s, Accenture, KPMG, Deloitte, and EY.

Vishal Marria, CEO of Quantexa
Vishal Marria, CEO of Quantexa

Vishal Marria, CEO of Quantexa, said, “After closing our Series D investment round, Quantexa has been on a transformational journey, accelerating the growth of our global software business and firmly establishing our leadership position in the emerging Decision Intelligence category. In a challenging market we have doubled our ARR, our user base, and continue to penetrate new markets and industries. This infusion of capital will fuel further innovation, diversification, and expansion, and opens exciting options for our future.

“It’s a real testament to our vision and trajectory to have such a significant contribution from our new investor, GIC and the majority of our Series D investors – in our latest round. We warmly welcome GIC and thank our existing investors for their continued confidence in our ability to generate growth and accelerate the path to profitability.”

Enterprise Times: What does this mean

Quantexa is a British success story that has scaled up and is now a global company. Its platform is used in over 70 countries and by many leading organisations within its sectors. It is unclear whether it will look to extend its reach into other sectors with this funding or continue to focus on the areas it has already succeeded in.

Existing investor, Henry Mason, Partner at Dawn Capital, commented: “Today’s fundraise is testament to the strength of Quantexa’s business. Its unique technology provides valuable insights for clients across a myriad of industries from money laundering and credit risk, through to human trafficking and customer acquisition.

“We have backed the company for five years now and believe more strongly than ever that its unique technology, with the potential to unlock value from vast amounts of data, has the greatest potential to give enterprises a truly connected view of their data to help them make faster, more accurate decisions”. 

Perhaps surprising is that this round is less than its Series D funding round. It is an interesting decision that shows a degree of caution by the founders and existing investors. While it needed funds to grow, it will be interesting to see how and where it spends the funds in a market where organisations are spending cautiously.

The choice of GIC is also interesting. Founded in 1981, it is one of three investment firms that look after the Singaporean government reserves. Its knowledge of the Asian markets will help Quantexa expand in the region. While the growth in the US is impressive, is APAC its next target market, and is the choice of GIC important?

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