Morganable Technology / Innovation
Capitolis has raised $220 million in fresh financing as major global financial institutions back the fintech’s expansion into securities lending and financial-market technology.
Lagos —
Financial technology company Capitolis has raised $220 million in new financing, pushing its valuation to $1.9 billion as it prepares to expand its services for banks and institutional investors.
The New York-based fintech announced the funding on October 6, 2026, in a round that included a $120 million Series E equity investment and additional debt financing.
The equity round was led by Citi, one of the company’s existing investors. New strategic investors Bank of America, Nomura and Tradeweb Markets also participated alongside existing backers including Barclays, BNP Paribas, J.P. Morgan, State Street and UBS.
The new investment comes as financial institutions continue to increase their use of technology to manage capital, funding and balance-sheet operations.
Capitolis develops technology designed to help banks and other financial institutions use their financial resources more efficiently.
The company’s platform operates across areas including capital markets and portfolio optimisation. Its technology helps financial institutions address challenges linked to capital and balance-sheet management.
With the latest funding, Capitolis is also preparing to expand further into securities lending.
The company recently announced an agreement to acquire eSecLending for $200 million. The acquisition is expected to strengthen Capitolis’ presence in securities lending while giving it access to a wider network of institutional asset owners.
Capitolis said the latest financing would support the acquisition and add new capabilities and clients to its platform.
The company’s move shows how fintech businesses are increasingly developing technology not only for individual consumers but also for large financial institutions.
While many fintech companies are known for mobile payments, digital banking and consumer finance, Capitolis operates further inside the financial system.
Its technology focuses on helping banks and institutional investors solve complex financial and capital-management problems.
The latest funding also reflects continued interest from major financial institutions in financial technology companies that provide infrastructure for the broader financial market.
Citi led the equity investment, while several other global banks and financial-market companies joined the round.
The participation of these institutions gives Capitolis access to strategic investors with significant experience across global capital markets.
The company’s valuation has also increased from its previous major funding round.
Capitolis was valued at $1.6 billion during its Series D financing in 2022. The latest round now places its valuation at approximately $1.9 billion.
The new financing consists of $120 million in equity and debt financing that brings the total to $220 million.
The debt portion is being provided by First Citizens Innovation Banking, Hercules Capital and Pinegrove Venture Partners.
Capitolis founder and Chief Executive Officer, Gil Mandelzis, said the company deliberately chose a combination of equity and debt.
The decision reflects the company’s expectation of stronger cash generation as its business expands.
The new funding comes at a time when fintech investment is increasingly focused on businesses that provide specialised financial infrastructure rather than simply offering another consumer-facing application.
Capitolis fits into this trend by using technology to improve how established financial institutions manage capital and access financial opportunities.
Its planned acquisition of eSecLending is expected to broaden that role.
Securities lending involves the temporary transfer of securities between market participants, usually in exchange for collateral. It supports activities across financial markets and can help institutions generate additional returns from securities they hold.
By adding securities lending to its platform, Capitolis expects to create additional opportunities for institutional clients.
The company said the acquisition will also strengthen the foundation for developing more financial solutions in the future.
The deal is subject to customary closing conditions, including regulatory approvals.
Capitolis’ latest funding also highlights the growing relationship between traditional financial institutions and fintech companies.
Instead of operating separately, major banks are increasingly investing in technology businesses whose platforms can improve financial-market operations.
The list of investors in Capitolis’ latest round demonstrates this trend.
Bank of America, Nomura and Tradeweb Markets are joining existing investors such as Citi, Barclays, BNP Paribas, J.P. Morgan, State Street and UBS.
For Capitolis, the backing could provide both financial resources and industry expertise as it expands.
The company also expects its acquisition of eSecLending to contribute significantly to future revenue.
According to Capitolis, the combined business could generate tens of millions of dollars in additional revenue as early as next year.
However, the expansion will also require the company to integrate its new acquisition successfully while maintaining the technology and services that have attracted major financial institutions.
The development reflects a wider shift in fintech.
Financial technology is no longer limited to digital wallets, payment apps and online banking. Increasingly, fintech companies are building specialised systems that operate behind the scenes and support banks, investment firms and institutional investors.
Capitolis’ latest funding demonstrates the scale of investment available to companies serving this part of the financial sector.
As financial institutions continue to modernise their operations, demand for technology that can improve capital management and market efficiency is likely to remain strong.
For Capitolis, the $220 million funding round provides fresh capital for its next stage of growth.
More importantly, the $1.9 billion valuation and backing from some of the world’s biggest financial institutions underline the growing importance of technology in the infrastructure of global finance.
