Flowdesk Raises $52M in Series B Extension Round From HV Capital and BlackRock

Flowdesk is a France-based crypto trading agency known for its specialty as a market maker and a liquidity provider in the crypto space.

Crypto trading agency Flowdesk has successfully raised an additional $52 million in an extension of its Series B funding round, bringing the total amount raised to $102 million, Drive Capital reports.

The new funding, which was a mix of equity and debt capital, will be used to further grow Flowdesk’s business and services. Of the $102 million, around 90% is equity, and the remaining 10%, or $10.2 million, is debt, according to Flowdesk co-founder and global CEO Guilhem Chaumont.

Key Investors and Funding Breakdown

Among the investors who participated in the funding round are HV Capital, which also secured a seat on Flowdesk’s board, and BlackRock Managed Funds, which provided a debt facility.

European investor HV Capital is said to have led the majority of the equity portion of the funding round.

Moreover, French private equity firm Eurazeo, Cathay Innovation, and ISAI VC invested in the equity portion of the funding round. Meanwhile, the majority of the debt funds were provided by accounts managed by BlackRock.

CEO Explains New Debt Strategy

The CEO of the crypto trading agency pointed out that they are approaching the recent debt financing as a strategic move to fuel their scaling endeavors and sustain the company's balance sheet in the long run.

“We will do so not only with equity or our own profits. That’s why we chose the path of debt, which is a non-dilutive option for us. This option is open to us given the financial health of the company and our capacity to easily repay the debt,” Chaumont added.

While detailing the time-frame of the funding round, Guilhem disclosed that the majority of the transactions took place in 2024.

He further explained that Flowdesk wasn’t actively seeking to raise new funds but it comes as part of a natural progression after receiving strong interest from multiple investors.

Earlier in January 2024, Flowdesk announced the completion of its Series B funding round with $50 million and was valued at $250 million.

Flowdesk’s Expansion Plans and New UAE Office

With the new funds, Flowdesk plans to expand its offerings to capitalize on the increasing demand for real-world asset tokenization and broaden its over-the-counter derivative business.

Additionally, the firm plans to set up a dedicated crypto-credit desk to cater to the growing demand for such facilities.

“We aim to bridge the gap in the market for crypto credit facilities,” the CEO stated.

Apart from the crypto desk, the market maker is also planning to focus on proprietary trading infrastructure, and compliance. In his latest LinkedIn post, the CEO added:

“We’re building solutions that are transparent, scalable, fast, and competitive, spanning the full spectrum of assets — from majors to meme coins, and eventually tokenized securities.”

The crypto trading agency is also planning to double its workforce in the next year and open an office in the United Arab Emirates, which will be its fourth office after France, Singapore, and the United States.

Finally, on the regulatory front, Flowdesk is preparing for the European Union’s Market in Crypto Assets Framework (MICA) to cater to the crypto demand in the European markets.