Funding Boost: Flowdesk Gains $52 Million Series B Extension to Fuel Growth Strategy
Flowdesk, a French digital asset financial technology provider, has raised $30 million in funding through Series B, primarily in the form of debt instruments, to support its expansion plans[1].
The choice of debt financing over equity can often be motivated by the desire to avoid ownership dilution and maintain strategic decision-making control. This move aligns with Flowdesk's goal to leverage the UAE's favorable regulatory environment for crypto and fintech innovation, aiming to establish a regional presence and serve institutional clients more effectively.
Flowdesk's CEO, Chaumont, stated that the company's financial health enabled the choice of debt as a financing option, considering it a strategic move to sustainably scale Flowdesk's balance sheet[1]. The company plans to use these funds to launch a dedicated credit desk and open an office in the UAE.
The UAE's fintech and crypto markets have been attracting many global players for growth and regulatory advantages, making it a logical target for expansion. The UAE's financial sector is actively promoting the development of digital assets, providing a conducive environment for Flowdesk's growth.
On LinkedIn, Chaumont mentioned that Flowdesk is developing transparent, scalable, fast, and competitive solutions for a wide range of assets, from major cryptocurrencies to meme coins, and eventually tokenized securities[1]. The company's offerings include market making, liquidity provision, OTC trading, brokerage, and treasury management.
The Series B round was led by HV Capital, with participation from Eurazeo, Cathay Innovation, and ISAI VC. BlackRock provided the debt financing for the round. As part of the equity financing agreement, HV Capital will get a board seat at Flowdesk[1].
In January 2024, Flowdesk announced a $50 million Series B funding round. The recent Series B extension brings the total for the round to $102 million[1]. Around 80% of the fresh capital was raised as equity, while the remaining 20% is structured as debt.
Flowdesk does not provide advertisements, and no subscriptions, X, or Telegram handles were mentioned in this paragraph. The company aims to scale its OTC derivatives business in response to the increasing demand for tokenisation products.
[1] Source: Company press release and media reports.
The decision to utilize debt financing instead of equity by Flowdesk, a French digital asset financial technology provider, indicates a strategic move to maintain ownership and control while scaling their balance sheet. In line with their goal to expand in the UAE's favorable regulatory environment, the company plans to use the $102 million raised in Series B (in which 80% was raised as equity and the remaining 20% as debt) to establish a regional presence, launch a dedicated credit desk, and open an office in the UAE, offering solutions for various assets, including cryptocurrencies, meme coins, and tokenized securities. This strategic move aligns with the UAE's active promotion of digital asset development, providing a conducive environment for the growth of Flowdesk's business.
