Quick take:
- The crypto market maker plans to use the capital to launch a dedicated credit desk and open a new office in the UAE.
- Around 80% of the fresh capital was raised as equity while the remaining 20% is structured as debt.
- HV Capital led the equity round with participation from private equity firm Eurazeo, Cathay Innovation and ISAI VC.
Flowdesk has rasied $52 million in a Series B extension bringing the total for the round to $102 million, co-founder and CEO Guilhem Chaumont posted on LinkedIn. Around 80% of the fresh capital was raised as equity while the remaining 20% is structured as debt, Chaumont told The Block.
The company previously announced a $50 million Series B funding round in January 2024.
According to the announcement, the crypto market maker plans to use the fresh capital to accelerate its expansion plans by launching a dedicated credit desk and launching an office in the UAE.
HV Capital led the equity round with participation from private equity firm Eurazeo, Cathay Innovation and ISAI VC, while the debt financing came from accounts managed by BlackRock. As part of the equity financing agreement, HV Capital gets a board seat at Flowdesk.
Chaumont credited his company’s “financial health” as an enabling factor for choosing debt as a financing option, calling it a strategic move to scale Flowdesk’s balance sheet sustainably. “We will do so not only with equity or our own profits. That’s why we chose the path of debt, which is a non-dilutive option for us,” he said.
Flowdesk offers a range of crypto trading services including market making, liquidity provision, OTC trading, brokerage and treasury management. It now wants to scale its OTC derivatives business amid the rising demand for tokenisation products.
“We’re building solutions that are transparent, scalable, fast, and competitive, spanning the full spectrum of assets—from majors to meme coins, and eventually tokenized securities,” Caumont wrote on LinkedIn.
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