Allianz invests $30m in fintech business C2FO

Allianz Group’s digital investment unit Allianz X has invested $30 million in fintech firm C2FO that connects buyers and suppliers of goods and services with working capital funding needs.

Allianz X’s investment is part of the recent C2FO $100 million funding round that will support international growth, additional working capital solutions, and greater development of the C2FO customer community. Proceeds will also be used for secondary share purchases, the company said.

“As a strategic investor, we are excited to be part of C2FO’s next development steps,” said Nazim Cetin, CEO of Allianz X. “C2FO’s business model of connecting companies with working capital in real time is a unique solution to a critical aspect of trade financing.”

C2FO enables corporates to upload approved invoices onto its marketplace, allowing their suppliers to receive faster payment directly from their customers. Suppliers receive payments in advance while buyers increase their EBITDA (earnings before interest, taxes, depreciation and amortization) and gross margin, earning a better return on short-term cash, according to the statement.

At the end of 2017, C2FO provided $1 billion of funding per week to businesses in more than 100 countries. By 2021, the company is forecasting $1 billion in funding per day.

Sandy Kemper, C2FO founder and CEO, said: "We are honoured to have Allianz X’s support and confidence in C2FO. We continue to deliver tremendous value to our global corporate buyer customers while helping their suppliers access working capital at a fair price. As we expand our working capital product set, the partnership with Euler Hermes will accelerate and enhance our ability to deliver much-needed liquidity to businesses around the world."

Wilfried Verstraete, Euler Hermes chairman of the board, added: “The strength of this investment in C2FO is simple: it sets the foundations to a truly reciprocal and strategic partnership. This partnership will be a unique combination of Euler Hermes’ credit insurance expertise with the C2FO dynamic discounting model. Our first joint initiatives will further strengthen the C2FO technology platform and expand working capital and credit availability to businesses around the world.”

Apart from Allianz X, the list of C2FO investors include Mubadala Investment Company, Union Square Ventures, Mithril Capital Management, and Temasek.

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