London-based ALT21, a hedging technology company, announced on Thursday, October 12, that it has raised $21M (approximately €19.4M ) in a pre-series A round million funding round.
The UK company will use the funds to sustain its growth trajectory and broaden the base of strategic partners to reach a larger demographic of SMEs.
ALT21 plans to expand overseas and license its software to a broader range of fintechs and banks, enabling them to provide lower-cost FX services to their customers within their regulated businesses.
The company plans to invest in artificial intelligence and machine learning to bridge the gap between human interaction and trading apps for SMEs, strengthening products like its hedgucation suite of education modules.
Richard Hayes, Chairman says, “This latest funding round serves as an important external validation of ALT21’s strategy, execution and market opportunity. The last 12 months have been difficult for fintech businesses in a rising interest rate environment, but the team at ALT21 has continued to execute strongly, strengthening the robustness of its platform and operations and adding world-class new talent.”
ALT21: Digital hedging platform
Led by Pritesh Ruparel, ALT21 operates an end-to-end digital hedging platform.
The platform, offered as a SaaS and managed service, allows financial and non-financial institutions to provide hedging services that are simple to understand, low-cost, and self-service, significantly increasing adoption among SMEs.
In 2022, the company claims to have generated €8M in operating income, a five-fold increase over the year before.
In the last 12 months, ALT21 says it has invested heavily in its platform, improving automation and user experience, its operating infrastructure and processes, and its team, nearly doubling its R&D headcount over the same timeframe to 37 people, bringing total headcount to 68.
Pritesh Ruparel, ALT21, CEO, says, “Our mission is to make things simple. We use technology to scale where others have added human capital, providing a highly automated service that cuts cost and complexity, and gives value back to small businesses at a time when they need it most.”
“When fintechs experience high demand, it’s tempting to push for growth at all costs without strengthening the foundations to scale. Making the decision last year to invest in our foundations and build scalable architecture amid rapid growth was a brave one, and one that I believe will pay off for us in the long run. We are extremely focused on creating sustainable success for our customers and believe this is exemplified by the infrastructure investments we have made, which allow us to support customer growth while rapidly gaining market share,” adds Ruparel.