Today Demica, one of the world’s largest working capital Fintechs, announced that it has successfully closed a US$30 million Series C financing round led by Simcah Management LLC.
Over the past five years, Demica has built a rapidly growing Software as a Service (“SaaS”) platform to manage working capital for over 500 large corporate multinationals financed by 50 global financial institutions. During this time the company has grown funded programmes from US$3bn to US$16bn, established a commercial presence across Europe and North America and expanded its development centres in UK, India and Poland.
Uniquely in the market, Demica’s vision is to give treasurers access to the full range of working capital finance products offered by banks around the world through its award winning portal. Responding to customer demand, this financing round will facilitate adding invoice discounting and distribution finance products to the platform as well as enhancing the syndication and risk distribution functionality. In addition, the investment will enable Demica to expand its North American team and build deeper relationships with the banks and institutional credit investors that finance its transactions.
Matt Wreford, CEO of Demica, commented: “The trend for working capital finance transactions to be managed on independent third party platforms has accelerated during 2019. All parties are looking for flexible financial structures that can be automated with best in class risk mitigation for funders. This investment round takes us another step closer to delivering this vision and transforming how working capital is financed globally.”
David Cohen, managing member of Simcah Management, commented: “As an experienced investor in enterprise SaaS companies, I have been attracted for many years to the working capital finance market due to its substantial size and consistent growth rate. Demica is one of the very few credible platforms that has the potential to reach critical mass on a global scale.”
Completion of the transaction is subject to the requisite regulatory approvals from the Financial Conduct Authority. Terms of the investment were not disclosed.
Demica is a rapidly growing Fintech providing working capital solutions to large corporates and banks with a broad range of receivables, inventory and payables finance products. The company focuses on multinational clients all over the world, across industries and sectors, requiring facilities of US$50mn to US$750mn+. Today over US$16bn of funding is outstanding on the platform provided by a diverse range of banks and institutional investors.
Over the past five years, Demica has raised US$70mn from 76 West Holdings (whose CEO Eric Schwartz serves as Chairman), IFC (a member of the World Bank), JRJ Group, Simcah Management, TOMS Capital and Wyelands Capital to invest in its proprietary technology platform to enable it to automate complex, high volume programmes and release billions of dollars of trapped working capital from supply chains.
About Simcah Management LLC
Simcah Management, like all of Demica’s shareholders, manages a permanent capital vehicle able to hold its investment over the long term. Simcah invests in both public and private securities.