10x Banking raises GBP £40 million from AshGrove Capital

10x Banking has raised GBP £40 million from AshGrove Capital, following a period of profitability at the banking software company.

The London-based group became EBITDA-positive over the past 12 months. Over the same period, annual recurring revenue rose by more than 30%, more than 10 financial institutions were added as customers, and the platform passed 10 million live accounts.

10x Banking sells core banking technology to financial institutions seeking to replace older systems. Its customers include Westpac, Chase UK and The Co-Operative Bank of New Zealand, and it has an Asia-Pacific base in Sydney.

The deal brings in AshGrove Capital as a new investor. AshGrove focuses on business-to-business software and services companies across Europe and manages about EUR €1 billion in capital across its strategies.

10x Banking will use the new capital to expand sales and go-to-market operations. The company was founded in 2016 by Antony Jenkins, former Barclays Chief Executive, and is also backed by investors including BlackRock and J.P. Morgan.

The fundraise comes as banks continue to review long-running technology replacement programmes. Core banking systems sit at the centre of customer accounts, payments and product administration. They are expensive and difficult to change, but many lenders are under pressure to update platforms built before the current era of real-time digital services.

For software suppliers in this market, new contracts can take years to secure and deploy. That makes profitability and recurring revenue growth important signals for investors assessing whether specialist providers can turn large implementation projects into more predictable software income.

Growth signals

Recent trading reflects demand from financial institutions seeking to modernise legacy infrastructure. 10x Banking argues that older systems often limit how quickly banks can introduce products and use customer data across their operations.

Antony Jenkins, Founder, Chair and Chief Executive Officer of 10x Banking, linked the latest funding to that demand.

"Financial institutions have a clear ambition to innovate, but many remain constrained by infrastructure that was not built for real-time, digital banking. We created 10x to remove those constraints, enabling financial institutions to launch products faster, serve customers in real time and compete more effectively. Our platform is now proving its value at significant scale. AshGrove's investment is a strong endorsement of the progress we have made and will help us meet growing demand from banks around the world," said Jenkins.

The company has positioned itself as a supplier to large established banks as well as institutions launching newer digital offerings. That segment has drawn sustained investor interest because successful deployments can lead to long relationships and high switching costs, though implementation risk remains a defining feature of the market.

New investor

AshGrove's investment underlines continued appetite for software businesses with recurring revenue, even as technology funding has become more selective. Investors have placed greater emphasis on margin discipline and cash generation after several years in which software valuations were driven more by top-line growth.

Phil Fretwell, Co-Founder and Managing Partner at AshGrove Capital, set out the firm's view of the business.

"10x Banking has built one of the most compelling technology platforms in core banking today. Delivering a cloud-native platform at enterprise scale is exceptionally difficult, yet 10x has already proven its capabilities across millions of live accounts and with some of the world's leading financial institutions. We believe the company is well positioned to benefit from powerful industry tailwinds as banks continue replacing legacy systems with more flexible, real-time and AI-ready infrastructure. With a proven platform and deep domain expertise, we see a significant opportunity for 10x to continue expanding its role in the next generation of banking technology," said Fretwell.

The investment also adds financial flexibility as 10x Banking looks to win more customers. Expanding sales teams and supporting long procurement cycles can require significant upfront spending, particularly in banking technology, where large contracts often involve extended evaluation and integration work.

Nadir Guessoum, Chief Financial Officer of 10x Banking, said the funding would reinforce the company's financial position.

"We are thrilled to partner with AshGrove, with their investment strengthening our balance sheet and supporting our strategic growth priorities. Achieving EBITDA profitability while continuing to grow ARR demonstrates the commercial progress we have made, and AshGrove's investment reinforces confidence in the business and our strategy," said Guessoum.