Working capital fintech Demica closes USD30m financing round

Demica, a working capital fintechs, has successfully closed a USD30 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 USD3 billion to USD16 billion, 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, says: “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, says: “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 have not been disclosed.