Alkami Technologies is a Texas-based provider of digital banking solutions leveraging cloud technology for banks and credit unions. The company has recently announced to be going public and is reportedly aiming for over USD 2 billion valuation in its United States initial Public Offering. According to a report by Reuters, this information was published in the banking software provider’s prospectus.
Founded back in the year 2009 by Gary Nelson, Stephen Bohanon and Sean McElory, Alkami Technologies provides Cloud-based digital banking solutions. The platform offers a complete set of digital banking solutions to financial institutions, ready to facilitate both business user and retail business in terms of onboarding, account servicing and engagement. Alkami Technologies enables its users or clients to significantly enhance the platform’s services by regular upgrades to improve on user experience. Other than this, the company also aims to offer newer Alkami tools to on its platform along with third-party solutions as a complete set for financial institutions.
Coming back to the funding, as mentioned in a report by Reuters, Alkami Technologies is planning to raise over USD 150 million by selling approximately 6 million shares at a price range of USD 22 to USD 25 per piece.
According to the company profile on Crunchbase, the company last raised USD 140 million in a Venture Round in September 2020 led by D1 Capital Partners. Existing investors of the company include Fidelity Management and Research Company, Stockbridge Investors, Franklin Templeton Investments, S3 Ventures, Agronaut Private Equity among many others.
Alkami Technologies offers banks, financial institutions and credit unions with its cloud-based digital banking solutions that they can use to set up their digital offerings for business customers and retail customers.
COVID-19 pandemic has been the year for digital service providers because brick and mortar businesses have gone deep into the ground because of the COVID-19 induced lockdowns. This factor has blown a critical hit to the country’s economy as well but any business that runs digitally has been afloat this whole time and Alkami Technologies has been one of those companies.
Since the lockdown began, every financial institution, bank and credit unions need an effective and secure digital platform to offer its services. Alkami has been providing this secure platform to financial companies. As mentioned in a report by Reuters, small banks and banking companies do not have the resources to set up an internal digital platform to offer their services. Thus, they turn their heads towards third-party companies such as Alkami to provide them with digital solutions.