Rising demand over the past year to accelerate the digitalisation of global trading networks has been accompanied by a push for more streamlined and secure solutions, as evidenced by the expansion of providers like Komgo who have pioneered secure and user-friendly trading platforms.
The Switzerland-based company closed its third round of funding last week with more than CHF26 million in new equity raised. Figures from the 12-month period to May indicate a 50% increase in trade finance transactions on its platform, and a 65% increase in clients in production.
While pressure for digitalisation isn’t new, Covid-19 and the emergence of a contactless world in which interactions between businesses are now by and large done virtually has brought the need for new and safer trading technologies into sharper focus.
Komgo has accordingly developed four key platforms—Konsole, Market, Check and Trakk—that together help financial enterprises communicate in a simpler and more secure way, and enable them to harmonise their data and ensure audit trails are protected against fraud and falsification.
Its growth over the six years since its founding has been matched by a strengthening global reputation such that two new names, including SMBC, have recently been added to a roster of shareholders that already boasts some of the world’s largest financial institutions, including Citi, ING and ABN-AMRO.
Komgo’s CEO, Souleïma Baddi, says their backing is indicative of the central role that trustworthy, streamlined trading platforms will play going forward.
“The nature of Komgo’s business, as a B2B financial software provider, means that having the requisite institutional support is key,” she says.
“Our base of founding shareholders have thus far enabled the company to take a leading role in the transformation of trade finance. We’re delighted to welcome SMBC to this prestigious group, and to achieving our next period of growth together.”
The latest round of funding drew interest from both new and returning investors, which the company says is a result of the strong momentum driving its scaling of the business.
Its efforts will now focus on refining existing products and generating coverage of new workflows and trade finance applications, such as borrowing base facilities, contract renewal and stock reconciliation.
Its next-generation smart, secure digital documents with embedded data will also be rolled out over the coming year, while the addition of new staff in its Singapore office, coupled with the opening of new offices in the US, stands to further strengthen its market position.
By Francis Andrews