A group led by private-equity company EQT AB is acquiring a minority stake in banking-software firm Mambu, a deal that values the financial-technology company at more than $5.3 billion, the companies said.

The investment is the latest bet on European technology providers that are taking advantage of the switch to digital-banking services by consumers and businesses.

In June, Swedish payments provider Klarna Holding AB was valued at $45.6 billion. Then in October, N26 Bank GmbH, a Germany-based digital bank, reached a $9 billion valuation based on a new funding round.

Founded in 2011, Mambu sells banking software as a subscription service. Its customers include established financial-services companies such as U.S. money-transfer provider

Western Union Co.

as well as upstarts such as N26.

EQT, along with existing Mambu investors including Silicon Valley-based firms TCV and Bessemer Venture Partners, are investing €235 million, equivalent to roughly $265 million, in the software provider for a total company valuation of €4.7 billion.

The level is almost three times the more-than-€1.7 billion valuation that Mambu achieved in January, when it last raised new money. TCV led that funding round.

German digital bank N26 reached a $9 billion valuation based on a new funding round in October.


Dado Ruvic/REUTERS

Mambu has earmarked its new funds to hire more engineers and further invest in its platform to accelerate the development time for new banking-related products to a matter of months from a few years.

Mambu operates offices across parts of Europe, the U.S., Middle East, and Asia Pacific, employing 800 people. In the third quarter, its revenue rose by more than 120% from the year-earlier period, the company said. Closely held Mambu doesn’t disclose financial figures.

Competitors of the Amsterdam-based Mambu include U.S. payments giant

Fiserv Inc.,

FISV 0.80%

software providers


SAP 0.01%


Oracle Corp.

ORCL -1.23%

and Thought Machine, a British banking-software firm.

Mambu’s cloud-based offering allows customers to speed up the configuration and introduction of new lending and deposit products,

Eugene Danilkis,

Mambu’s chief executive and co-founder, said.

“Speed itself…is a critical characteristic for survival in financial services,” with banks and new entrants under pressure to introduce new apps to interact with customers, the executive said.

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EQT, whose stock has been among the best performing among its publicly traded rivals, is making the investment as part of a focus on founder-led technology companies across Europe. These firms have an established product or service and seek new funding to scale the business. Other holdings include Mollie, a European payments service provider, and U.K. digital pet-insurance firm Bought By Many.

By servicing both legacy banks and fintech disrupters, Mambu places itself in a better position to win a bigger share of the market, said

Carolina Brochado,

an EQT partner. Ms. Brochado estimates Mambu’s addressable market is worth at least €50 billion in revenue annually.

Stockholm-based EQT was founded in 1994 by a company backed by Sweden’s billionaire Wallenberg family and is currently headed by CEO

Christian Sinding.

It also invests in infrastructure, private and public equity, and real estate and oversees total assets of more than €70 billion.

Write to Ben Dummett at ben.dummett@wsj.com

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