A London-based developer of software used by banks and hedge funds has raised $28m (£19.8m) from two early backers of tech giant Alibaba and Michael Spencer’s Nex Group.

Duco, which was founded eight years ago by a computer science postgraduate from University College London, allows financial institutions to manipulate enormous amounts of data through remote internet servers, popularly known as the cloud. It is understood the funding round values the company at about $100m.

The investors behind Duco’s latest funding included Fidelity International’s investment arm Eight Roads and Insight Venture Partners, both of which backed the $500bn ecommerce giant Alibaba.

Duco, which employs 50 people, was founded by chief executive Christian Nentwich after the financial crisis.