Assure Hedge raises €5m and appoints Davy to lead Series A funding round

Fintech aims to double client base again after seeing strong growth during pandemic

Assure Hedge founder Barry McCarthy.

Assure Hedge founder Barry McCarthy.

 

Irish foreign-exchange technology company Assure Hedge has confirmed a new €5 million investment to support its plans for rapid expansion.

The latest financing values the company at €30 million with funds to be used to hire additional staff and invest in new product development and channels to market, the company said.

Founder and chief executive Barry McCarthy also said Assure Hedge had appointed Davy to lead a Series A round for it later this year.

Founded by the former financial derivatives trader in 2016, Assure Hedge is seeking to transform the way businesses manage their foreign-exchange exposure through its easy-to-use online platform.

The company, which has offices in Dublin, London and Portugal, has developed a platform that makes it easier for organisations to eliminate uncertainty around their forex exposure. Its technology easily integrates with existing product suites used by forex brokers and banks to provide automated digital FX hedging solutions.

Despite the pandemic, Assure Hedge has grown rapidly over the past year, adding 15 new staff and doubling its registered client base. The company plans to more than double clients again over the next 12 months and add at least another 15 employees.

Untapped opportunity

With more than $5 trillion in foreign-exchange revenues traded globally each day, the company sees a huge untapped opportunity in providing SMEs with the opportunity to manage their currency risk simply and at low cost.

“This fundraising will support our continued rapid growth trajectory and provides us flexibility in when and how we engage with institutional investors. Given the response we have had to date we are confident that we are still only scratching the surface of demand from SMEs looking for an easy way to manage foreign-exchange exposure,” Mr McCarthy said.

“Whether it is coping with the volatility in sterling caused by Brexit or handling the rollercoaster ride of the dollar through quantitative easing, our mission is to ensure that the ability to hedge foreign-exchange risk at low cost is no longer the preserve of big corporates,” he added.

Assure Hedge’s growth has been supported by receiving authorisation to trade in foreign currency options under the European Union’s Markets in Financial Instruments Directive in 2019 and the Payment Services Directive in 2020.

The company last year agreed a £9 million margin finance facility with Irish tech entrepreneur Pearse Mee’s Jersey-based Carrig Glen Investments.

Assure Hedge is chaired by Richard Hayes, who founded and led IFG Group for 17 years. He is also a director and investor in Cork-based fintech Global Shares, which last year announced plans to significantly grow headcount as it aims for a €1 billion valuation.