Allianz Group’s digital investment unit Allianz X, as well as Mubadala Investment Company, has led a $100 million (around AU£129 million) funding round into working capital marketplace C2FO (Collaborative Cash Flow Optimization). Existing investors Temasek, Union Square Ventures, and Mithril Capital also made a sizeable investment.
C2FO, which now provides $1 billion of funding per week to businesses in over 100 countries, will use the proceeds toward initiatives such as international growth and additional working capital solutions. Secondary share purchases from earlier investors and associates will also be funded by the latest investment.
“As a strategic investor, we are excited to be part of C2FO’s next development steps,” said Allianz X chief executive Dr Nazim Cetin. “C2FO’s business model of connecting companies with working capital in real time is a unique solution to a critical aspect of trade financing.”
From the current milestone of providing $1 billion of funding per week, the marketplace’s projection is to provide that same amount but on a daily basis come 2021. President and chief operating officer Sanjay Gupta added that supplier customer network expansion is high on C2FO’s agenda.
Essentially described as a win-win for C2FO and Allianz, the relationship will see the latter’s trade credit insurance specialist Euler Hermes playing a major role.
“The strength of this investment in C2FO is simple: it sets the foundations to a truly reciprocal and strategic partnership,” commented Wilfried Verstraete, chair of the board of management of Euler Hermes. “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.”
Sandy Kemper, founder and chief executive of the non-bank provider, noted that the objective was for C2FO to be the world’s most convenient and lowest cost source for business funding.
“Today, 99.5% of our customers tell us we have achieved that goal,” said Kemper. “We continue to deliver tremendous value to our global corporate buyer customers while helping their suppliers access working capital at a fair price. We are honoured to have the support and confidence in C2FO from Allianz X, Mubadala, and all our investors.”