Lumin Digital raises USD $115 million in new capital

Lumin Digital has raised more than USD $115 million in new capital, valuing the banking software company at USD $1.6 billion.

The round includes more than USD $70 million from Lumin clients and follows a separate USD $45 million growth equity financing led by Light Street Capital. Fifteen clients joined the latest investment round alongside existing shareholders.

Lumin sells digital banking software to banks and credit unions. The new capital will fund product development across artificial intelligence, payments, customer relationship management and lending on its unified digital banking platform.

The deal builds on earlier fundraising. Lumin completed a USD $170 million growth equity round in late 2024 and announced USD $75 million in client investment in early 2025.

The latest transaction highlights an unusual feature of Lumin's ownership structure: customers also hold equity stakes in the company. That approach is intended to align the interests of financial institutions that use its software with the business that develops it.

Chief Executive Officer Jeff Chambers said participation from both customers and the company's lead investor showed support from parties with direct experience of the business.

"We've built Lumin around a simple idea: the financial institutions that depend on our platform should have a stake in it. Fifteen more clients made that commitment in this round, and Light Street doubled down on theirs. Together, that tells us something. The people who know this company best, our customers and our lead investor, believe in where we're taking it. This capital accelerates Lumin's platform expansion already underway, and we're doing it with a cap table built for the long term," said Jeff Chambers, Founder and Chief Executive Officer, Lumin Digital.

Client backing

Client investment has become a recurring part of Lumin's financing strategy. The latest backing came from customers who had already used its products and chose to deepen the relationship through equity ownership.

That model may give Lumin a differentiated position in the digital banking software market, where vendors compete to supply online and mobile banking systems to financial institutions under pressure to improve user experience and retain customers. By bringing clients into its shareholder base, Lumin is betting that customer support can extend beyond contract renewals into long-term capital backing.

Light Street Capital, which led the USD $45 million growth equity financing as part of the overall fundraise, also increased its commitment.

"Lumin Digital's commitment to serving banks and credit unions is unwavering, fostering a client relationship that is truly unique among software vendors. We are proud to continue our support of Lumin, in partnership with clients, to build the go-to cloud platform for financial institutions in the era of AI," said Kevin Sullivan, Partner, Light Street Capital.

Growth metrics

Lumin said it has exceeded financial targets while improving margins and operating efficiency. It also cited a net promoter score of 94 as a measure of customer satisfaction.

The company also cited research from 451 Research, part of S&P Global Market Intelligence, which found a 145% return on investment over five years and a 10.8-month payback period for customers. Those figures are likely to form part of Lumin's pitch to banks and credit unions considering major technology upgrades as digital channels remain central to customer acquisition and service delivery.

One participating client said its investment decision was based on operational experience with the platform.

"We are investing in Lumin Digital because we've seen firsthand what the platform does for user growth and digital engagement. This is a company that has earned our trust, and investing was a natural extension of a relationship already built on shared outcomes," said Dave Larson, Chief Executive Officer, Affinity Plus.

Founded in 2016, Lumin focuses on software for banks and credit unions rather than the broader consumer financial technology market. With the latest capital in place, the company said it has a stronger balance sheet to support its product plans and customer base.

FT Partners advised Lumin on the transaction.