London, 14 March 2018 – Demica, one of the world’s largest Fintechs focused on providing working capital solutions, and Wyelands Capital, a member of the GFG Alliance (GFG), announce today that they have entered into a strategic partnership to provide inventory finance to global commodity producers and traders.
The partnership will marry Wyelands Capital and GFG Alliance’s extensive trading network, relationships and expertise in commodities markets with Demica’s wide range of working capital solutions through its proprietary technology platform. The move is part of GFG’s strategy to fill an important market gap in the provision of working capital based financial products and solutions to industrial and commodity trading businesses in the UK and globally.
Matt Wreford, CEO of Demica, comments: “With over $9bn of receivables and supply chain finance outstanding on our platform today, extending our offering into inventory finance is a logical next step to provide a full range of working capital solutions. Our partnership with GFG will provide us access to the deep domain expertise and relationships in the commodity sector necessary for success. We are excited about the opportunity to work with another entrepreneurial and driven firm and look forward to helping commodity firms to access committed, low cost capital via our unique technology platform.”
GFG’s Executive Chairman Sanjeev Gupta adds: “Wyelands Capital and GFG are ideal partners to Demica given the extensive commodity and banking experience within the GFG Alliance. Our aim is to provide industry-friendly financial solutions that will plug gaps in the marketplace to enable companies to grow. There is still a significant need in the commodity and industrial sectors for competitive financing and Demica’s market-leading platform and capabilities provide an exceptionally good “bridge” between borrowers and lenders in this space.”
As part of its commitment, Wyelands has made a minority equity investment into Demica where it joins JRJ Group, Toms Capital, and 76 West Holdings as investors. This transaction has received 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 non-investment grade, multinational clients all over the world, across industries and sectors, requiring facilities of $50m – $750m+.
Over the past three years, Demica has materially expanded its origination, structuring, implementation and placement teams to enable it to offer a seamless end-to-end solution to a wide universe of clients. In parallel, significant investment in its proprietary technology platform has enabled it to automate complex, high volume programmes and release billions of dollars of trapped working capital from supply chains. Today over $9bn of funding is outstanding on the platform, provided by a diverse range of banks and institutional investors.
About Wyelands Capital
Wyelands Capital is the banking and financial services arm of the GFG Alliance, a London-headquartered international group of businesses, founded and owned by the British Gupta family. With revenue of over US$10 billion and 12,000 staff, it combines renewable energy generation, recycling, metal manufacturing, engineering, mining and banking, working together to deliver a common business strategy.
Besides Wyelands, the Alliance comprises Liberty, an integrated metals & automotive industrial business; SIMEC; an energy, mining and infrastructure group; JAHAMA, a global property development business; and the GFG Foundation which focuses on the retention and creation of engineering and industrial skills. Through its forward-looking GREENAL and GREENSTEEL strategies, the GFG Alliance promotes industrial revival based on low-carbon and sustainable production methods. Its commercialisation of new technologies and the regeneration of manufacturing and engineering skills are cornerstones of the Alliance’s plan to deliver a step change for manufacturing in key regions of the world, particularly in the UK, EU, Australia and USA.