Alkami to Acquire Mantl for $400 Million

Alkami Technology to Acquire Mantl for $400 Million

Alkami Technology, a leading provider of digital banking services, has announced the acquisition of Mantl for a sum of $400 million.

Mantl's Focus on Digital Account Opening

Founded in 2016 by Nathaniel Harley and Benjamin Conant, Mantl has gained recognition as “the Shopify of account opening.”

The company’s software was specifically designed to streamline the digital account opening process for community banks and credit unions.

Strategic Rationale for the Acquisition

This acquisition is anticipated to finalize by the end of March.

Alkami communicated to TechCrunch that integrating Mantl will empower financial institutions to more effectively onboard customers, enhance engagement, and foster sustainable growth.

Organizational Structure Post-Acquisition

Following the acquisition, Mantl will function as a separate business unit.

It will report directly to Mantl’s current CEO, Nathaniel Harley, who will in turn report to Alkami’s chief executive officer, Alex Shootman.

Mantl's Funding History

Based in New York City, and also known as Fin Technologies, Mantl has secured $83 million in funding throughout its existence.

The company’s most recent publicly disclosed funding round occurred in January 2023, representing an extension of its Series B, which valued the company at $345 million post-money, as per PitchBook data.

Key Investors in Mantl

Notable investors in Mantl include:

• CapitalG (Alphabet’s independent growth fund)
• Flourish Ventures
• D1 Capital Partners
• BoxGroup
• Point72 Ventures
• Clocktower Technology Ventures
• OldSlip Group

From Challenger Bank to Fintech Enabler

Initially, Mantl aimed to establish its own challenger bank.

However, the founders recognized the substantial presence of 10,000 banks and credit unions in the U.S., with a significant 96% relying on third-party, often outdated, technology providers like Fiserv and Jack Henry.

Addressing Technological Gaps in Community Banking

Harley highlighted in a 2021 TechCrunch interview that much of this existing technology is “decades old.”

This outdated infrastructure hinders the ability of community banks and credit unions to effectively compete in the digital landscape and limits the digital banking services available to consumers.

Mantl's Pivot and its Impact

Based on this insight, Mantl shifted its focus, believing that community banks and credit unions are vital for maintaining competition and fairness within the U.S. financial system.

This strategic pivot has proven successful, culminating in the acquisition by Alkami Technology.