Top FinServs – including Allianz and Citi – are pouring money into a startup that’s taking on index-linked investments.
As investors ride the wave of index-linked funds and increasingly demand more sophisticated and customizable investment indices, MerQube’s technology is gaining attention.
Indexing technology firm MerQube just raised a $22 million Series B funding round led by Intel Capital, with participation from Allianz Life Ventures, Citi, JPMorgan, and UBS.
The company’s data processing abilities allow it to deliver rules-based investment products – based on strategies like defined outcome, risk control, or themes like ESG – more quickly and cost-effectively than traditional players.
“Today’s legacy systems struggle to keep up,” MerQube’s chief commercial officer, Roby Muntoni, told Insights Distilled. The firm “fills that fintech gap with a building block-based architecture and cloud-based platform that enables these next generation indices,” she added.
The new investment from and partnership with Allianz will help MerQube tailor its solutions for the insurance space (for example, by launching financial products to help manage retirement risk).
Ultimately, having FinServ investors helps MerQube align with the necessary requirements to woo investment banks, according to Muntoni: “The MerQube team is grateful that the majority of its investors are also clients.”