TrueLayer has signed an agreement for a $35m funding round led by Tencent and Temasek.

Northzone and Anthemis also took part in the round, bringing the total investment to $47m for the European-based provider of financial APIs.

TrueLayer hopes to use the investment to continue to expand its Open Banking platform in Europe.

The provider hopes to connect the majority of European banks by the end of 2019, with ambitions to expand outside of Europe thereafter.

The company has so far partnered with companies such as Monzo, Zopa and CreditLadder.

Francesco Simoneschi, CEO and Co-founder of TrueLayer, said: “Open Banking is removing friction and barriers of entry from banking so that consumers will benefit from modern, fair and competitive access to financial products and services.

“In the last year, we have seen steady growth, and increased adoption of Open Banking in consumer propositions, however we still have a long way to go.

“TrueLayer will be a driving force behind this change by enabling and fostering financial innovation and removing friction from financial services.

“In the pursuit of our goal of growing the Open Banking economy, we are delighted and incredibly proud to team up with such high profile global organisations and investors.

“When you combine mobile and the power of Open Banking, you have a potent disruptive force which will completely transform the financial industry.” 

TrueLayer provides an interface between financial institutions and third-party applications over an API, allowing companies to capitalise on Open Banking and PSD2 rules by providing clear access to banking infrastructure.

Jeppe Zink, Partner at Northzone, added: “We are still at the very beginning of opening up the banking system, for the benefit of consumers everywhere.

“I have been hugely impressed with what Francesco, Luca and their stellar team have built since we first invested, with significant early partnerships in place.

“This new financing will help TrueLayer pursue their mission at pace, to enable more people across the world to bank without friction.”