Funding Boost for Flowdesk: $52M Series B Extension fueling growth ambitions
Flowdesk, a leading player in the crypto trading sector, has announced a strategic move to scale its OTC derivatives business in response to the rising demand for tokenisation products. This decision comes after the company raised $52 million in a Series B extension, bringing the total for the round to $102 million.
The funding mix, configured as 80% equity and 20% debt, represents a balanced approach to funding growth while managing capital costs and dilution. HV Capital led the equity round, with participation from private equity firms Eurazeo, Cathay Innovation, and ISAI VC. Debt financing for the round was provided by accounts managed by BlackRock.
Flowdesk's CEO, Chaumont, made the announcement on LinkedIn, stating that the company is developing solutions that are transparent, scalable, fast, and competitive. These solutions cover a wide range of assets from major cryptocurrencies to meme coins, and eventually tokenized securities.
Expansion Plans
As part of its expansion plans, Flowdesk intends to establish a dedicated credit desk and open a new office in the UAE. The dedicated credit desk aims to enhance Flowdesk's service offerings in digital asset trading by providing tailored credit solutions, which can attract more institutional clients and increase trading volumes.
Opening a UAE office aligns with tapping into the rapidly growing digital asset market in the Middle East, a region keen on fintech innovation and digital asset adoption. This move positions Flowdesk for geographic and market expansion.
Services Offered
Flowdesk offers various crypto trading services, including market making, liquidity provision, OTC trading, brokerage, and treasury management. As part of the equity financing agreement, HV Capital gets a board seat at Flowdesk.
Chaumont cited the company's "financial health" as a reason for choosing debt as a financing option, calling it a strategic move to sustainably scale Flowdesk's balance sheet. The company previously announced a $50 million Series B funding round in January 2024, but details about the specific use of the previously raised funds were not provided.
[1] Source: Flowdesk's official press release
- Flowdesk's expansion plans involve setting up a dedicated credit desk for offering tailored credit solutions in digital asset trading and opening a new office in the UAE to tap into the growing digital asset market in the Middle East, aiming for geographic and market growth.
- The £52 million Series B extension financing, cushioned by equal parts equity and debt, will help Flowdesk sustainably scale its balance sheet, enabling the company to develop competitive solutions for various assets, including cryptocurrencies, meme coins, and tokenized securities, while also providing liquidity provision, OTC trading, brokerage, and treasury management services.
