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Ageras raises EUR 82 million for new acquisitions
‘The ones we eye reinforce our vision and goal 100%; to become market leader and then go public’
Danish-founded Ageras beats all expectations by raising EUR 82 million for new acquisitions in an oversubscribed private placement round. The round has seen participation by i.a. the Norwegian state pension fund Folketrygdfondet, American asset manager Lazard as well as Investcorp as lead on top of a 2023 in which the Danish fintech comet has become profitable.
COPENHAGEN, Denmark, May 24, 2024 /PRNewswire/ — Danish fintech Ageras, which provides accounting software to over 300,000 active European small businesses, has completed its sixth and largest investment round to date according to documents just filed with the Danish Business Authority. The round is a private placement totaling EUR 82 million and is oversubscribed with overwhelming commitments from both new and existing investors; to increase Ageras’ acquisition opportunities in an attractive European market. Amongst others, Investcorp, together with the two founders and other existing investors, has accounted for approximately 50% of the round in addition to new names such as the Norwegian state pension fund Folketrygdfondet and the American asset manager Lazard, says Ageras’ CEO, Rico Andersen, who confirms that negotiations are already underway with several potential acquisition targets:
“We want to make it easier to be a small business in an increasingly difficult administrative and regulatory landscape by offering a fully integrated platform where companies can manage their banking, accounting and tax in one financial cockpit,” says Rico Andersen.
“To deliver faster on that vision, M&A is an integral part of our strategy, where we have acquired technology and thus expanded our product faster than if we built everything from scratch. Currently, we see an attractive pipeline of potential acquisitions emerging, and the ones we eye reinforce our vision and goal 100%; to become market leader and then go public. Therefore, we have assembled a dream team of investors and are filling up the ‘war chest’ right now,” continues Rico Andersen, who reports that Ageras achieved positive EBITDA for the first time in 2023, ending the fiscal year with a record-high ARR (Annual Recurring Revenue, edt.) of EUR 41 million compared to EUR 27 million in 2022.
Has raised almost EUR 200 million
Ageras was founded in 2012 by then 19-year-old Rico Andersen and 20-year-old Martin Hegelund as Ageras.com, an online marketplace matching small businesses with accountants and bookkeepers, however, has today grown into a fintech company with approximately 250 employees and a comprehensive cloud-based software product.
With the latest record-breaking investment round, Ageras has raised a total of almost EUR 200 million, and despite the company announcing towards the end of 2023 that it did not need to raise further funds, market conditions have made it favorable for the Danish fintech to continue its acquisition hunt; to offer even more features to the growing customer base in its four core markets i.e. Denmark, Germany, France and the Netherlands. Specifically, the ambition is to increase ARR to EUR 100 million after which an IPO can potentially be considered – and amongst the new investors there is full confidence that both can be achieved within a few years:
“We remain impressed with the growth and strategic development of Ageras since our first investment in 2017. Therefore, we are excited to lead this investment round which enables more accretive M&A to expand the product offering and gain market share,” says Gilbert Kamieniecky, Head of Private Equity Europe at Investcorp.
About Ageras
Ageras was founded in 2012 by serial entrepreneurs Rico Andersen and Martin Hegelund, who together have over 25 years of experience building internet businesses. Ageras’ vision is to create success for small businesses by simplifying their administration. By integrating its solutions into a single cockpit for invoicing, accounting, payroll, banking and finance, it enables business owners to focus on running their business. Ageras started as the online marketplace Ageras.com, matching SMEs with accountants, and has grown into a company with approximately 250 employees offering a complete ecosystem of tools and services for SMEs. The company’s investors include Investcorp, Rabo Frontier Ventures (Rabobank) and Lugard Road Capital (Luxor Capital), and now also Folketrygdfondet and Investering & Tryghed. For more information, please visit www.ageras.com.
The following parties have participated in the transaction:
Existing investors: Investcorp, Roosgruppen, Back in Black and the founders Rico Andersen Invest and Hegelund Equities
New investors: Folketrygdfondet, Lazard and Investering & Tryghed
Timeline – How Ageras has evolved over the past 12 years:
2012: Ageras is founded by Rico Andersen and Martin Hegelund.
2016: Ageras is named Børsen Gazelle as one of Denmark’s fastest growing companies and wins the EY award for Entrepreneur of the Year.
2017: Investcorp acquires the majority of Ageras which also wins the Danish e-commerce award for Best B2B Company.
2019: Ageras acquires accounting software Billy.
2020: Rabobank makes a strategic investment in Ageras, achieving EUR 10 million in ARR the same year.
2021: Lugard Road Capital injects DKK 450 million into Ageras which later acquires the invoicing system Zervant and the payroll system Salary.
2022: Canadian CIBC invests EUR 35 million in Ageras which later acquires German neo-bank Kontist.
2023: Ageras becomes profitable for the first time in July 2023.
2024: Ageras receives EUR 82 million in investment from its founders, Investcorp, Folketrygdfondet, Lazard, Roosgruppen, Back in Black and Investering & Tryghed.
For further information, please contact [email protected] or telephone +45 20729972.
– Ageras A/S, 30/4724
This information was brought to you by Cision http://news.cision.com
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Martin Hegelund left og Rico Andersen right |
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Rico Andersen 4 |
View original content:https://www.prnewswire.co.uk/news-releases/ageras-raises-eur-82-million-for-new-acquisitions-302155054.html
CUBE, a leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has released a report detailing significant compliance challenges faced by global financial services firms today. The report serves as a strategic resource for compliance departments, incorporating insights from esteemed compliance professionals and regulatory experts within the industry.
Dr. Yin Lü, CUBE’s Global Head of Product for Artificial Intelligence, describes the recent environment in financial services as tumultuous, driven by rapid technological advancements, stringent regulatory scrutiny, and intense consumer demand for new products and services, all within a compressed timeline.
The report categorizes the primary compliance issues into five key areas: the rapid pace of regulatory changes, proactive risk management, the complexities of Environmental, Social, and Governance (ESG) criteria, data privacy concerns, and the challenges of operating within tighter budgets and rising costs.
One significant point of concern is the expanding scope of regulations, exemplified by the constant updates to the UK’s payment frameworks post-Brexit and the U.S. regulatory bodies’ efforts to regulate cryptocurrencies, digital wallet services, and shadow banking. Since the 2008 financial crisis, CUBE’s regulatory inventory has tracked over 40 million regulatory documents affecting the banking sector, highlighting the complex landscape compliance professionals must navigate.
Dr. Lü emphasizes the importance of staying ahead of risks to mitigate increasing penalties for non-compliance. She notes that recent enforcement actions have focused on lapses in recordkeeping, cryptocurrency fraud, and weaknesses in corporate governance, with fines related to unmonitored phone usage topping $2 billion since 2022.
The report also discusses the growing ESG divide, noting the difficulty compliance officers face due to conflicting demands and evolving standards across various jurisdictions. With over 600 active ESG standards and frameworks, achieving compliance is increasingly challenging.
Data privacy remains a critical concern, with privacy laws expanding significantly since 2023 under heightened regulatory demands to protect consumer data. AI and machine learning are invaluable in helping compliance teams manage complex international frameworks through horizon scanning and data mapping.
Furthermore, Dr. Lü highlights the pressure on compliance functions to do more with less, suggesting that integrating AI into compliance processes is crucial for managing costs and enhancing efficiency. She advocates for transitioning to machine-driven and human-validated compliance workflows to maintain alignment with the latest regulations and reimagines the potential of compliance teams to enhance financial stability and protect businesses and consumers alike.
Source: ibsintelligence.com
The post Can AI & ML revolutionise compliance in financial services amid regulatory challenges? appeared first on HIPTHER Alerts.
BlueFlame AI, a generative AI platform designed specifically for alternative investment managers, has successfully completed its Series A funding round, raising $5 million.
The round was 25% oversubscribed, reflecting strong investor confidence, and led to a new company valuation of $50 million. The funding sources included BlueFlame’s extensive industry network, strategic partners, and a notable contribution from the management team.
Established by experts in cybersecurity, FinTech, and governance, risk management, and compliance (GRC), BlueFlame AI is a leader in incorporating artificial intelligence into the alternative investment management arena. The company leverages cutting-edge AI and machine learning to create innovative solutions that transform the operations of investment managers, with a focus on enhancing security, privacy, and compliance.
The newly acquired funds will fuel BlueFlame’s accelerated growth plans. The company intends to broaden its services, improve its generative AI platform, and hire additional high-caliber staff, including client success managers, engineers, product managers, and operations personnel.
This expansion is part of BlueFlame’s strategy to continuously improve its client support and develop new AI technologies that streamline data integration and enhance operational efficiency.
Since its launch in October 2023, BlueFlame has rapidly expanded, now employing over 20 professionals and serving global clients who manage hundreds of billions of dollars in assets. Its clientele includes private equity managers, hedge funds, and wealth managers who benefit from BlueFlame’s integrations with over 20 system providers and its more than 50 pre-built workflows that boost operational capabilities.
Raj Bakhru, the CEO of BlueFlame AI, highlighted the critical role of AI in contemporary investment strategies, stating, “AI has become an essential tool that alternative investment managers recognize as crucial for streamlining operations, enhancing efficiencies, and supporting advanced strategies. The value of AI is evident, and our investors are keenly aware of the challenges and opportunities in harmonizing structured and unstructured data using AI, while also adhering to compliance, security, and regulatory demands. This funding is a strong endorsement of our business model, our technology’s robustness, and the value we add to the industry. With this capital, we are poised to focus on our primary objectives of product innovation and delivering exceptional value to our customers, as we continue to explore new ways for our clients to use AI to minimize time on routine tasks and focus more on achieving results for their investors.”
Before this funding round, BlueFlame had not reported any prior investment rounds, indicating that this Series A represents a significant initial step in their journey to advance FinTech solutions within the investment management sector.
Source: fintech.global
The post Investment tech innovator BlueFlame raises $5m to advance AI capabilities appeared first on HIPTHER Alerts.
Latest News
CBUAE issues Sandbox Conditions Regulation to boost innovation in financial services sector
The Central Bank of the UAE (CBUAE) has recently introduced the Sandbox Conditions Regulation, aimed at fostering a conducive environment for startups and global fintech companies.
This move is designed to enhance creativity and innovation within the financial sector by providing a structured regulatory and supervisory framework. The regulation is also expected to bolster the financial sector’s competitiveness and contribute to the UAE’s economic expansion.
Regulatory Framework and Participant Conditions
The regulation sets out specific criteria that participants, including startups, fintech firms, and established businesses offering innovative financial services, must meet. It permits these entities to trial new business models, products, and services for a set period while adhering to ongoing regulatory requirements to safeguard the interests of all parties involved.
Enabling Proactive Supervision and Regulatory Compliance
These stipulations allow the CBUAE to proactively monitor and address innovations through its supervisory activities, assisting participants in aligning their operations with regulatory standards.
Application Requirements
To qualify, applicants must introduce a technologically innovative financial product, service, solution, or business model that could potentially benefit consumers and/or the broader industry. Participants are also expected to show an intention to expand the proposed service across the UAE after completing the sandbox program.
Promoting Innovation and Protecting Stakeholders
Khaled Mohamed Balama, Governor of the CBUAE, remarked that the release of the Sandbox Conditions Regulation underscores the UAE’s dedication to nurturing innovation and advancing a knowledge-based economy. The framework not only encourages experimentation and positive contributions to the economy but also prioritizes consumer protection and the interests of all stakeholders.
The regulation has been officially published in the Official Gazette and is now in effect.
Source: economymiddleeast.com
The post CBUAE issues Sandbox Conditions Regulation to boost innovation in financial services sector appeared first on HIPTHER Alerts.
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