Funding of $52M Series B Extension secured by Flowdesk to speed up growth initiatives
Flowdesk Secures $175 Million in Funding for OTC Derivatives Business Expansion
Flowdesk, a leading crypto market maker, has announced a Series B extension round, bringing in over $175 million in funding support. The funding was raised through a combination of over $75 million in equity and an expanded secured credit facility capacity of $100 million provided by Citi [1].
The fresh capital will be primarily used to expand Flowdesk's operations and grow its OTC (Over-The-Counter) derivatives business. The company aims to scale its trading infrastructure and reinforce its position in the digital asset OTC derivatives market, capitalizing on the growing demand for large, customized crypto trades executed off public exchanges [1][2].
CEO Chaumont cited the company's "financial health" as a factor for choosing debt as a financing option. The debt financing for the round was provided by accounts managed by BlackRock. Around 80% of the fresh capital was raised as equity, while the remaining 20% is structured as debt [1].
HV Capital led the equity round, with participation from private equity firm Eurazeo, Cathay Innovation, and ISAI VC. As part of the equity financing agreement, HV Capital gets a board seat at Flowdesk [1].
In addition to the funding, Flowdesk has plans to open a new office in the UAE as part of its expansion [1]. The company offers a variety of crypto trading services, including market making, liquidity provision, OTC trading, brokerage, and treasury management [1].
Flowdesk also plans to use the fresh capital to launch a dedicated credit desk. However, no other detailed specifics about geographic expansion or new product lines were disclosed in the available sources [1].
Chaumont made a statement about the company's plans on LinkedIn, but no further details about the use of the fresh capital have been revealed [1]. The crypto market maker previously announced a $50 million Series B funding round in January 2024, making this the second round of funding for Flowdesk in 2024 [1].
[1] Source: Flowdesk press release, 2024.
Flowdesk intends to utilize the newly raised funds primarily for expanding its OTC derivatives business and growing its operations, as well as launching a dedicated credit desk in the finance sector. The company's strategic plans also include opening a new office in the UAE, with further details about geographic expansion or new product lines yet to be disclosed.
