The online invoice finance marketplace C2FO has raised $40m in equity money.
The investment was led by Singapore sovereign wealth fund Temasek holdings, which holds a massive $194 billion in assets under management. Temasek joins existing C2FO shareholders Union Square Ventures, Summerhill Venture Partners, OPENAIR Equity Partners, Mithril Capital and Tiger Global.
C2FO is a fintech business that specialises in the invoice finance space. Rather than flogging receivables to external retail or institutional investors, C2FO allows buyers to upload approved invoices onto the system with “target return” and “cash available” metrics attached. Suppliers then submit a request for early payment, at a certain rate, and the platform’s algorithms suggest a happy medium.
According to C2FO, the amount of capital flowing through the platform in Q2 this year hit a record $5.4 billion. That’s more than a quadrupling in volume on Q2 in the previous year, during which $1.2 billion was circulated in the marketplace. Bear in mind of course that these numbers must be viewed very differently to transactional volumes in, say, the marketplace lending space. We presume that these numbers track the value of the invoices processed on the platform, and it may be that only a fraction of those invoices are ultimately factored.
Whatever the case, the year-on-year growth figures are impressive. John Kill, Senior Vice President and Chief Financial Officer of C2FO, commented on the company’s expansion and on the significance of the $40m fundraise:
“Our record growth in the past quarter for existing and new global customers generated a 334% increase in working capital flows. Our market operates globally across 15 currencies and multiple languages. As we consistently outpace our year-over-year performance, we continue to attract the attention of world-class partners.”
“Our recent funding round led by Temasek is a strong vote of confidence that C2FO has established the leading global business network for working capital. Temasek’s market knowledge and relationships in emerging markets will help C2FO capitalise on the international demand for more effective capital solutions and continue to accelerate our rapid pace of innovation.”