LEHI — Financial technology innovator MX announced a new round of financing that will infuse the company with $300 million in fresh capital as it reaches a valuation of nearly $2 billion.
The Series C venture capital deal was led by a $150 million investment from TPG Growth with additional participation from new and existing investors including CapitalG, Geodesic Capital, Greycroft, Cota Capital, Canapi Ventures, Digital Garage, Point72 Ventures and Pelion Venture Partners, along with Regions Financial Corp.
MX provides services primarily for banks and financial institutions that take vast amounts of transactional data and synthesizes information to make it easier for end users to oversee and manage their personal finances.
MX founder/CEO Ryan Caldwell said the world of personal digital banking is continuing to evolve at a breakneck pace and his company is helping power those changes.
“The financial industry is at an inflection point as organizations look to become not only intermediaries, but true advocates for their customers by offering personalized insights and data-driven money experiences,” Caldwell said in a statement. “Along with incredible partners, we are helping financial institutions and technology companies accelerate their digital road maps and launch next-generation services and apps that will fundamentally transform how people interact with their money.”
In a 2019 Deseret News company profile, MX chief customer officer Nate Gardner explained that while his company’s clients are primarily banks and financial services businesses, the goal of its products is to make financial management as easy as possible for the individual. That happens, he said, via a process MX innovated that simplifies the complex transactional data that flows through banking institutions.
“Fundamentally, we ingest mounds and mounds of data from different sources then normalize and structure and enhance that data,” Gardner said. “The end result is clean and clear information that shapes the customer’s digital experiences in mobile and online banking and financial services.”
Gardner said the mission of easing the psychological wear and tear of financial management on individuals and families is the driving force behind MX’s innovations.
“Finances in general generate a lot of emotion and stress with the end user,” Gardner said. “Something like 80% of Americans are working paycheck to paycheck. They see something they don’t understand in their bank transactions or records and get worried. There’s a ton of friction, there’s a ton of tension and concern and that creates a lot of stress.”
MX reports in the last 12 months, the company has increased its market valuation to $1.9 billion and has built a client list that now numbers more than 2,000 banks, credit unions and technology companies and includes 85% of digital banking providers. The company says its software is helping smooth and simplify money management tasks on behalf of more than 200 million consumers. MX has doubled its employee count in the last two years and now has a staff of 550, most of whom are based in Utah.
Series C fund leader TPG Growth sees MX’s fin-tech innovations as a necessary component for a banking industry that is continuing its migration and adaptation to a fully digital realm.
“Investing behind the digital transformation of traditional financial institutions is a key theme for our team and we are excited to lead the latest funding round for a company that is at the forefront of this market,” Mike Zappert, partner at TPG Growth, said in a statement. “MX’s technology stack is a clear differentiator and has delivered tremendous growth for the company over the last 12 months. We look forward to building on this success by working with the team to partner with even more of the world’s most innovative brands to develop, launch, and power personalized money experiences.”