XAnge is taking a GBP1.2m equity stake in the FX Capital group, a London-based UK company operating under the name of The Currency Cloud.
Established in 2011, The Currency Cloud is the provider of an automated, cloud-based currency conversion and international payments service.
The Currency Cloud is currently finalising the reorganisation of its equity ownership base after raising GBP4.5m in 2012. XAnge Private Equity, which is investing via its XAnge Capital 2 fund, is joining Atlas Venture, Notion Capital and Anthemis.
Hervé Schricke, chief executive at XAnge Private Equity, will sit on the board of directors, alongside Fred Destin of Atlas Venture, Jos White of Notion Capital and Sean Park of Anthemis.
“The Forex and international money transfer space has changed very little since the emergence of the web. There is still a multitude of intermediaries and rate grids that lack transparency. With a fully integrated and automated offer, The Currency Cloud offers its clients significantly lower fees, enhanced transparency and greater flexibility. Moreover, by delivering its services through an API, the company can integrate the solution seamlessly into clients’ infrastructures and processes,” says Schricke.
The Currency Cloud is the third investment by the XAnge Capital 2 fund, which raised EUR60m in its first closing back in December 2011. Through API distribution and SaaS-based billing, its technology and sector positioning, The Currency Cloud forms part of XAnge’s Capital 2 venture strategy – a fund designed to invest in digital innovation.
This round of financing will help The Currency Cloud accelerate its growth, mainly in continental Europe, as well as enabling further development to its core technology.
Mike Laven, chief executive at The Currency Cloud, says: “Companies must manage various currencies in the course of their daily activities. This is a universal need. And yet, they still use methods that in some cases are obsolete and too expensive. Only very large companies and banks have tools for optimising these flows. The Currency Cloud’s technology platform transforms the foreign exchange industry by adding price transparency, forex risk hedging, and user-friendliness for daily use by companies. With its skills in innovative financial services, XAnge will help fuel our expansion into international markets in tandem with developing our core proposition.”
