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On average, Agicap clients manage 15 different bank accounts each. So the chief financial officers (CFOs) who work in these companies sometimes struggle to ensure that there are enough funds in the right bank account to pay employees and suppliers across different subsidiaries, countries and currencies.
This is also why they resort to Ajicap Centralizing data related to cash and forecasting future cash positions. The Lyon-based startup has raised a Series C funding round of €45 million (about $48 million at current exchange rates) from a single investor, AVP, the venture capital firm formerly known as Axa Venture Partners.
The fintech startup previously raised $100 million in 2021, amid the digital financing craze around the pandemic. At the time, the company was valued at €415 million (or about $450 million at current exchange rates). The company’s value has since inflated “significantly,” according to Agicap, though it did not disclose the extent of that inflation.
“We don’t disclose the exact valuation, but we have been able to increase it significantly since 2021,” co-founder and CEO Sebastian Piet (pictured above) told TechCrunch. When pressed he gave us a hint at the new rating: formerly Les Échos I mentioned Which Agicap was raising at a valuation between €700 million and €800 million (or $750 million to $860 million) — “we’re committed to that range,” Pitt said.
Narrow focus – the “massive” market.
Agicap’s relative success is due to a narrow focus on treasury management software – it doesn’t try to do everything at once like most fintech startups.
It’s also a relatively untapped market with many businesses still relying on Excel, exporting files from bank accounts, and enterprise resource planning (ERP) software. Proof of this lies in a recent study conducted by Agicap with 500 European CFOs in middle market companies. When asked what their preferred tool was for managing and forecasting their cash positions, 80% answered Excel.
It is also worth noting that Agicap’s main clients are CFOs and finance departments. And when the money teams love a product, they won’t unsubscribe anytime soon.
Agicap customers can sync data from their existing bank accounts, credit institutions and ERP solutions. It then acts as a central repository to display everything related to past and future cash flows. But Agicap is not just a visual dashboard; Users can initiate and schedule transfers directly from its interface as well.
“We think we’ll be able to use cash management as the foundation of what we call the CFO Suite, and provide other tools for CFOs and treasurers,” Pitt said.
In this context, the startup recently added accounts payable and accounts receivable. These features help you get paid faster as you can see pending invoices and alert customers if they are late. Likewise, Agicap imports purchase orders so you can pay suppliers on time and use that data for your upcoming budgets.
The startup currently has 8,000 customers, about half of them in France. Most of its remaining clients are located in other European countries. “We focus on medium-sized companies, with annual revenues of 5 to 10 million euros on average – and up to 500 million euros,” Pete said.
“We have already reached a break-even position on a cash basis for the quarter. So we did not need to raise any additional funds to continue our development. But we believe our market is huge.”
In addition to hiring new people to find new clients, Agicap plans to use the funding to launch new features around credit management and foreign exchange risk management.
What about offering credit products directly? “We don’t want to be a bank,” Pete said. “In other words, we don’t want to take on the financial risk of lending money ourselves. We know how to make software, and that’s what we intend to focus on.”
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