Innovative FX platform sidesteps the banks to bring transparency and fairness for SMEs and mid-caps
Kantox, a pioneering FX firm offering SMEs and mid-caps a foreign currency exchange solution via a peer-to-peer (P2P) trading platform, has announced today that it has secured 6.5 million euros of new funding. The increase in capital will be used to further develop its technology and consolidate its presence across Europe, providing even more clients with a cost-effective and transparent alternative to trading FX with banks and brokers. Partech Ventures and Idinvest Partners led the funding round alongside existing investor Cabiedes & Partners.
“We are extremely excited to have secured this latest round of funding, and can’t wait to continue building out our sales teams in Germany, France, Spain, the UK and Italy”, says Philippe Gelis, CEO of Kantox. “We believe our model is second to none and are convinced that it has a huge market potential globally. “
This latest news caps two extraordinarily successful years for Kantox. A 1 million euro seed investment in July 2012 had already helped to strengthen the business: Kantox now has more than 500 corporate clients all over Europe and is expecting its platform to process over 1 billion euros of transactions in the year to come. The business has grown to a team that is now 45 employees strong, offering companies the ability to trade over 25 currencies. Its client portfolio of SMEs and mid-caps now spans over fifteen industries, among which retail, technology, pharmaceuticals, media, publishing or manufacturing.
Philippe Gelis comments: “The internet brings unprecedented possibilities for SMEs to trade internationally. FX volatility, and an inability to hedge, is one of the key barriers these companies face as they set their sights overseas – we are determined to help them overcome this and achieve their full revenue potential. We have seen major disruption across the financial services and banking market in the last few years, with consumers and businesses alike now hungry for ‘non-bank’ alternatives.” Indeed, Kantox was founded on the belief that companies of all sizes should be entitled to fair and transparent foreign currency exchange, avoiding the high (and often hidden) fees charged by banks and brokers. The platform displays the mid-market rates and offers businesses the opportunity to match their transaction requirements with other companies through its P2P model.
Philippe Gelis, CEO of Kantox adds that “although the FX market is generally considered to be highly competitive and efficient, this is not an accurate representation of the reality. Large corporates enjoy access to really competitive rates while SMEs and mid-caps – who usually don’t have access to live rates or an in-house FX expert – are overcharged by a banking oligopoly which promotes opacity. Last year, our largest client saved 400.000€ and over 75% of our clients save more than 80% compared to what their banks or brokers used to charge them.”
Philippe Collombel, Managing Partner of Partech Ventures comments: “Kantox is one of the most remarkable actors within the trend of tech companies dedicated to financial services. Many companies will be able to reduce the cost of their FX transactions and to make them easier thanks to Kantox’s solution. We are very happy to support this amazing team in the development of their offer and are convinced of their ability to become a major player in the foreign exchange market.”
Benoist Grossmann, Managing Partner of Idinvest: “With offices based in London and Barcelona, Idinvest is delighted to partner up with the proud Pan-European company – Kantox. We believe that the breakthrough concept introduced by Kantox is highly innovative in a sector rarely challenged by innovation. Kantox’s drive and talent perfectly align with Idinvest’s digital investment strategy”.
Kantox is a pioneering firm in the FX industry, bringing light and providing fresh air in an obscure, static market. Expertise and passion result in an efficient and transparent solution to serve real economy clients. We offer SMEs and mid-cap companies, with revenues of up to 4 billion Euro, a foreign currency exchange solution via a peer-to-peer trading platform, allowing them to avoid the high (and often hidden) fees charged by banks and brokers.
About Partech Ventures
Partech Ventures is an investor specialized in high-growth-potential internet and information technology companies. The Partech Ventures team benefits from a long-standing track record in the American and European Venture Capital markets. The team has a strong experience in the international development of companies. Partech Ventures is the winner of the “Les Echos” Best Venture Capital team prize thanks to the multiple sales of portfolio companies to industry leaders. This investment strategy has been successfully applied for over 30 years and a large number of portfolio companies have successfully executed their IPO or have been acquired by strategic players, including: Akimbi Systems (VMW), Alvarion (ALVR), Apsylog (PRGN), Ascend Communications (ASND), Brands4Friends (EBAY), Buongiorno (BNG.MI), Business Objects (BOBJ), Cadence Design (CDNS), Cartesis (SAP), DailyMotion (ORANGE), DCT (SYMC), DiBcom (PARROT), Digital Island (ISLD), Digitick (VIVENDI), Fluxus (BT), Informatica (INFA), Inquira (ORCL), Invensense (INVN), ISDnet (CW), Jobpartners (TALEO), Jungo (NNDS), Meiosys (IBM), Pentasafe (NTIQ), Q-layer (ORCL), Quinstreet (QNST), Qype (YELP), Teknovus (BRCM), Verifone (PAY), Vignette (VIGN) et Visicu (EICU).
About Idinvest Partners
Idinvest Partners is a leading pan-European private equity manager focused on the middle market segment. With over €4 billion under management with success stories like Criteo (recently listed on the Nasdaq – CRTO), Meetic or Dailymotion. Idinvest Partners has developed several complementary areas of expertise including venture capital investments in innovative European start-ups, primary, secondary and mezzanine investments in European non-listed companies, and private equity consulting. Founded under the name AGF Private Equity in 1997, Idinvest Partners was formerly part of the Allianz Group until 2010 when it joined forces with IDI Group to become independent.