ING-backed Komgo raises CHF26 million (€23.7 million) in funding round
ING-backed software company Komgo has raised CHF26 million (€23.7 million) in its third funding round from a consortium of investors including ING Ventures.
Komgo digitalises trade finance with a platform that automates finance transactions, allowing banks, traders and other participants to transact in a secure environment.
“We are very proud of the achievements of Komgo and see the initiative as a great example of the commodity trade finance community coming together to drive digital transformation,” said Annerie Vreugdenhil, head of ING Neo, the bank’s innovation unit.
Spurred by surging demand for digital services during the pandemic, Komgo has seen a 50 percent increase in trade finance transactions on its platform and a 65 percent increase in clients in the past year.
Komgo will use the funds to accelerate its expansion strategy and invest in customer success teams, which will enable the company to support clients worldwide. The funds will also be used to refine Komgo’s products and trade finance applications, such as borrowing base facilities, contract renewals, stock reconciliation and secure digital documents.
“By supporting our clients in adopting Komgo, we can serve them better. Working with Komgo enables us to increase transactional security, strengthen audit and compliance capabilities and reduce fraud across the value chain,” said Maarten Koning, global head of Trade and Commodity Finance at ING.
Read today’s press release.
ING was one of 15 banks, commodity houses and trading companies to launch Komgo in 2018. The launch followed a number of successful experiments, including two blockchain-based proof of concepts tested on ING’s Easy Trading Connect platform in energy and soft commodities trading (Easy Trading Connect 1 and Easy Trading Connect 2), and Vakt, announced in 2017 – a blockchain-based platform that manages physical energy transactions from trade entry to final settlement.
One of Komgo’s products, Konsole, is available to ING clients in Europe and Asia, with plans to expand the service to US clients. Konsole allows banks and corporates to manage all their trade finance exchanges in one platform. ING is currently transacting with around 50 commodity trade clients on the platform. Besides Konsole, ING is validating other Komgo services, such as Market and Trakk, with the intention to make them available to its clients.
Want to know more about Komgo? ING’s Annerie Vreugdenhil, and Komgo CEO Souleïma Baddi in the podcast series Let’s Talk Innovation, chat about the impact Covid-19 is having on the sector, the need for reform, being a first mover in DLT/blockchain technology and what motivates them in their current roles.