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OpenLegacy claims to focus on the large installed base of enterprise applications created before the advent of cloud services. It also says its software can merge APIs into complex older applications within minutes
Fremont, CA: OpenLegacy, an application modernization startup based in Princeton, New Jersey, raised $20 million to pursue its mission of helping financial services companies move their information technology infrastructure into the cloud-native age. Japan’s SBI Holdings Inc. was the sole investor in the latest financial round, and it brings the company’s total funding to date to $70 million.
Founded in 2013, OpenLegacy offers an application programming interface (API) integration platform that enable banks to connect their core systems to digital services like online and mobile banking. By automating and standardizing the process of extending them with microservices-based application programming interfaces, the APIs make it possible for developers to add new functions to older applications without making risky and costly changes to their codebase.
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Microservices are self-contained software functions that usually run a single business process that can be used as needed. A number of modern applications are now built entirely of microservices because the architecture is more responsive, faster, and safer than that of traditional forms.
“OpenLegacy will enable our portfolio companies to quickly launch digital innovations, integrating, leveraging, and extending our legacy systems in a fraction of the time, all without changing the underlying systems,” said Yoshitaka Kitao, SBI Holdings’ chief executive officer.
SBI Holdings uses OpenLegacy’s technology to build new Internet banking features for its list of Japanese banks and to create a new blockchain-based payment app called Moneytap. It joins several financial services companies that are already using OpenLegacy’s tools to improve their apps and services, including Citigroup Inc., Liberty Mutual Group and BNP Paribas Group.
“SBI’s use cases demonstrate the range of achievements that OpenLegacy’s technology makes possible,” said Ron Rabinowitz, OpenLegacy’s President. “The investment opens the door to Japan, the world’s second-largest mainframe market. It is an important milestone in our global expansion; we’re now serving the world’s top clients across the United States, Europe, LATAM, and Asia.”
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