Plano fintech firm hauls in $140 million in growth funding

Plano-based digital banking software firm Alkami Technology is getting a $140 million infusion in a funding round led by one of Wall Street’s hottest hedge funds.

The lead investor, D1 Capital Partners, holds stakes totaling $13.4 billion in tech giants like Microsoft, Alphabet and Amazon, financial stalwarts such as JPMorgan Chase and U.S. Bancorp, and hotel and leisure plays Hilton and Las Vegas Sands, according to a recent regulatory filing.

Fidelity Management & Research Co., Franklin Templeton and Stockbridge Investors joined D1 in Alkami’s funding round.

Alkami said the new investment followed the company’s hitting several key milestones in its growth. In September, its digital banking platform reached nearly 10 million users and the company surpassed $130 million in annual recurring revenue by adding its 165th client.

“We are proud to add world-class crossover investors to our strong existing investor base, supporting Alkami’s mission,” said CEO Mike Hansen in a statement.

D1 Capital Partners, founded in New York by Daniel Sundheim, is described as being on a tear, posting what trade publication Institutional Investor called “explosive results” by doubling its gains for the year in August.

“Based upon our deep research, we believe that Alkami is a clear industry leader in the digital banking space that has earned the trust of hundreds of financial institutions and millions of users,” Sundheim said in a statement. “We have been impressed by the company’s uncompromising focus and bold investments and expect its innovation and leadership to continue.”

Alkami is one of the fastest-growing technology firms in North Texas. It earned spots on Deloitte’s Technology Fast 500 lists in 2018 and 2019, and ranked 903rd in this year’s Inc. 5000 with three-year revenue growth of 516%.

Since its founding in 2009, Alkami had previously raised $238.5 million from investors, according to Crunchbase, which tracks funding for emerging companies.