Demica, the specialist provider of working capital solutions to major corporates and banks has seen substantial growth and development since it was purchased by a private equity consortium two years ago. At the time Demica announced it would transform itself from a pure technology provider to one that also offers advisory and origination services for clients in the growing trade receivable and supply chain finance markets. Progress has been significant and Demica is pleased to provide the following update to the market:
Demica’s market-leading financing platform has had exceptional growth in the past two years, growing its assets under administration by 130% to US$5bn. This massive growth reflects the firm’s successful business model and sales strategy to win new clients. Demica has also enhanced its client servicing and support, and strengthened relationships with existing customers. Investments in the development of working capital products and technology have all been core to the business’s overall growth.
Employee numbers have also increased substantially, nearly tripling over the same time period and Demica now operates with 45 employees. Staff growth has been particularly high in origination and structuring, but a focus on technology and operations has led to increased staff here as well Today staff numbers are split almost even between origination, structuring and technology. Growth will continue, with Demica expecting to double the team within the next two years.
Demica CEO, Matt Wreford comments, "Two years ago we made a strategic decision to invest in this business, enhancing technology and offering the advisory and origination services we knew this growing market would need. That decision has proven to be a good one and Demica's strong growth reflects it. As the only fintech firm enabling a broad range of working capital finance for large corporates, we have the opportunity to offer a unique combination of technology, expertise and access to capital to our clients that gives them a turnkey solution."
Demica’s target market of multinationals with facilities over US$50m, is estimated at being over US$350 bn and growing at over 10% annually.*
Commenting on the market, Matt Wreford said, “The supply chain financing market, at approximately US$75 bn, has benefited enormously from an increased willingness from suppliers to sign up to these programmes. Combined with demand from banks to fund them, this market is growing strongly, albeit off a relatively small base.”
“Trade receivable finance has always been a larger market which we estimate to be over US$250bn today and which continues to grow. It fills a gap in the market for secured, committed funding that grows with the business. Growth has been further enhanced as cross-border funding has become easier, while regulatory treatment under Basle III makes it appealing for independents.”
*Based on analysis of rated agency data on asset backed commercial paper conduits, recent data from Factors Chain International on global factoring, studies from McKinsey on the market supply chain finance and Demica’s own propriety data.
About Demica
Demica is a recognised leader in providing working capital solutions to large Multinationals and Global Banks. The Company uniquely offers both receivables and payables programmes through its proven end-to-end technology platform which has a 15-year track record. Purchased by a group of private equity investors in 2014, Demica has transformed from technology provider to financing partner. Using its proprietary platform to allow clients to automate transactions while de-risking them for investors, it currently enables the financing of over US$50bn of receivables and payables per year for companies requiring facilities of US$50m to US$750m+. Based in London, Demica works with clients all over the world, across jurisdictions, industries and sectors.
Demica’s market-leading financing platform has had exceptional growth in the past two years, growing its assets under administration by 130% to US$5bn. This massive growth reflects the firm’s successful business model and sales strategy to win new clients. Demica has also enhanced its client servicing and support, and strengthened relationships with existing customers. Investments in the development of working capital products and technology have all been core to the business’s overall growth.
Employee numbers have also increased substantially, nearly tripling over the same time period and Demica now operates with 45 employees. Staff growth has been particularly high in origination and structuring, but a focus on technology and operations has led to increased staff here as well Today staff numbers are split almost even between origination, structuring and technology. Growth will continue, with Demica expecting to double the team within the next two years.
Demica CEO, Matt Wreford comments, "Two years ago we made a strategic decision to invest in this business, enhancing technology and offering the advisory and origination services we knew this growing market would need. That decision has proven to be a good one and Demica's strong growth reflects it. As the only fintech firm enabling a broad range of working capital finance for large corporates, we have the opportunity to offer a unique combination of technology, expertise and access to capital to our clients that gives them a turnkey solution."
Demica’s target market of multinationals with facilities over US$50m, is estimated at being over US$350 bn and growing at over 10% annually.*
Commenting on the market, Matt Wreford said, “The supply chain financing market, at approximately US$75 bn, has benefited enormously from an increased willingness from suppliers to sign up to these programmes. Combined with demand from banks to fund them, this market is growing strongly, albeit off a relatively small base.”
“Trade receivable finance has always been a larger market which we estimate to be over US$250bn today and which continues to grow. It fills a gap in the market for secured, committed funding that grows with the business. Growth has been further enhanced as cross-border funding has become easier, while regulatory treatment under Basle III makes it appealing for independents.”
*Based on analysis of rated agency data on asset backed commercial paper conduits, recent data from Factors Chain International on global factoring, studies from McKinsey on the market supply chain finance and Demica’s own propriety data.
About Demica
Demica is a recognised leader in providing working capital solutions to large Multinationals and Global Banks. The Company uniquely offers both receivables and payables programmes through its proven end-to-end technology platform which has a 15-year track record. Purchased by a group of private equity investors in 2014, Demica has transformed from technology provider to financing partner. Using its proprietary platform to allow clients to automate transactions while de-risking them for investors, it currently enables the financing of over US$50bn of receivables and payables per year for companies requiring facilities of US$50m to US$750m+. Based in London, Demica works with clients all over the world, across jurisdictions, industries and sectors.
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