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Irish fintech firm Fenergo raises $80m in funding

Edmund Heaphy
Finance and news reporter
Fenergo, an Irish fintech firm, helps financial institutions with regulation and compliance. Photo: Matt Crossick/ EMPICS Entertainment

Dublin-based fintech firm Fenergo, which helps global banks with regulation, on Wednesday said that it had raised $80m (£62m) in a funding round involving Dutch bank ABN Amro (ABN.AS).

The funding, Fenergo said, will be used to enhance its products and potentially allow it to acquire new business units.

The investment represents a 10% stake, valuing the firm at around $800m, according to a person with knowledge of the deal.

The fintech firm is one of Ireland’s fastest-growing technology companies, and describes itself as a “digital enabler” of client and regulatory technology for financial services firms.

New York-based enterprise software firm DXC Technology also invested in the company as part of the funding round.

Fenergo says it has over 70 clients, and noted on Wednesday that it added the asset management division of UBS (UBS), National Australia Bank (NAB.AX), and Royal Bank of Canada (RY) as customers, among others, in 2019.

Global banks HSBC (HSBA.L), Spanish bank BBVA (BBVA) and RBS (RBS.L) are also clients.

“We are delighted to join ABN Amro Ventures investment portfolio,” said Marc Murphy, the CEO of Fenergo.

Murphy noted that ABN Amro’s experience and industry knowledge made them “ideal investment partners” for Fenergo.

“Ultimately, we only exist to serve the needs of our customers. Our goal is to ensure they can digitally transform, be regulatory assured and able to deliver award-winning customer experiences,” he said.

Fenergo previously raised funding from leading venture capital firm Insight Venture Partners, and in 2018 raised debt funding from Silicon Valley Bank and Goldman Sachs.

The company’s most recent accounts, for its 2018 financial year, show that Fenergo is close to being profitable, unlike many fintech firms that have raised venture capital funding.

It made a pre-tax loss of €12.9m (£10.9m) on revenues of €70.1m. It had made a profit of €2.6m in 2017.

“We look forward to further accelerating digital transformation, enabling better client experiences and delivering even greater value to our shared customers going forward,” said Spencer Lake, the vice-chairman of Fenergo, on Wednesday.

“Our decision to invest and partner with Fenergo aligns with our strength and success in financial services,” said Dmitry Loschinin, an executive vice-president of DXC Technology.