Crossflow Payments, a tech-driven alternative finance platform delivering supply chain finance solutions, has today announced a “significant investment” from Calibrate Management, an investor focused on early stage, high growth firms. The deal sees Calibrate take a minority equity stake in Crossflow and will provide further firepower as the business continues to execute against its ambitious growth strategy.
“I am delighted to welcome Calibrate onboard as a key shareholder in our business. This investment comes at an important time for us not only in providing additional firepower to help support further scaling of the business, but also in providing us access to two of the most respected investors in the City,” opined Crossflow Payments Chief Executive Tony Duggan. “The team at Calibrate has a track record that is second to none and their passion is unrivalled. I look forward to working closely with John and Remy as we continue to drive origination and take advantage of the significant market opportunities our innovative solution presents.”
The investment comes as the business continues to scale its supply chain finance proposition, helping businesses optimize their working capital and strengthen their supply chain while allowing SME suppliers to access outstanding invoices. As part of the transaction, Calibrate Management’s John White and Remy Kesrouani will join the team as ongoing strategic investment advisers to the business. White founded Calibrate in 2015, after twenty years at the investment fund manager GLG Partners, latterly running two of the most successful funds. With a background in investment banking, Kesrouani will help Crossflow ensure the “highest standards” of due diligence, building on its commitment to combine credit expertise with technological innovation and adhering to the industry standards it helped create as a founding member of the International Association of Alternative Finance.
“The supply chain finance market presents a significant opportunity for new entrants who are able to offer an alternative proposition, combining deep credit expertise with technological innovation. That is exactly what Crossflow Payments is able to do with a highly scalable and exciting business model,” added Calibrate Management Partner and Founder John White.
The need to access working capital is regularly cited as top priority by both large corporates and SMEs, according to a Note 2015 McKinsey Payments report. Traditionally dominated by banks, the supply chain finance market is expected to grow by around 15% in the coming years in terms of revenue and presents a significant opportunity for Fintech entrants who can leverage new technology to transform the supply chain.