Demica, a UK-based company that provides working capital solutions to a wide range of major corporations and financial institutions, announced on Wednesday it secured $30 million through its Series C funding round, which was led by Simcah Management LLC. Founded in 1992, Demica revealed it is currently facilitating the financing of over $90bn of receivables and payables per year from over 135 countries around the world.
“As a trusted expert in trade receivables securitisation, supply chain finance and invoice discounting, we have recently extended our existing technology and service capabilities to include the ability to underwrite or arrange funding for our clients’ programs where required. Based in London and New York, we are a critical partner for corporations, advisers, banks and private equity sponsors seeking to optimise working capital.”
Demica then noted that over the past five years, Demica has built a growing Software as a Service (SaaS) platform to manage working capital for more than 500 large corporate multinationals financed by 50 global financial institutions. During this time the company has grown funded programs from $3 billion to US$16 billion. It also has established a commercial presence across Europe and North America and expanded its development centers in the UK, India, and Poland. Speaking about the investment round, Matt Wreford, CEO of Demica, stated:
“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, added:
“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.”