Cloud-based banking platform ThoughtMachine will join the UK’s highest-valued fintech companies following its most recent funding round.

According to Sky News, the ThoughtMachine has reached an agreement with New York-based fund Nyca Partners to lead this round. Other investors include Draper Esprit, Eurazeo, IQ Capital and Playfair Capital.

ThoughtMachine, which counts Lloyds Banking Group as one of its shareholders, is likely to raise approximately £150m ($206m) at a valuation of more than $1bn (£725m) on both a pre- and post-money basis, according to Sky News’ sources. The deal will more double the amount of capital that has been put into the business since it was formed in 2014. ThoughtMachine has previously raised £100m ($137m) of external capital, and currently has over 500 employees spread across offices in London, Melbourne, New York, Singapore and Sydney.

The company provides core banking services through cloud-based platforms. Its clients include Standard Chartered and Atom Bank. Cloud-based platforms are becoming increasingly popular with banks as they provide a less labour-intensive solution to certain administrative tasks.

ThoughtMachine are expected to announce the full details of the funding round later this year. At the completion of this round, the company are likely to become one of the UK’s tech ‘unicorns’ – private companies valued at more than $1bn (£725m).

A ThoughtMachine spokesperson told Sky News: “We can confirm the business is fundraising and will close a significant sum, a testament to our investors’ confidence in the business, and the impact of Vault, our cloud native core banking platform.

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“We are thrilled with the overwhelming new and existing investor interest in our business.”

ThoughtMachine declined to comment further on the funding round.