Blockchain trade finance firm Komgo raises $ 29 million – Ledger Insights
Trade finance blockchain joint venture Komgo raised 26 million francs ($ 29 million) in its third round of funding. The investment made SMBC and an unnamed global financial institution as two new shareholders, bringing the total number to twenty.
the Komgo the trade finance platform targets the commodities sector. It was launched in 2018 by ING, Société Générale, ABN Amro, Shell and eleven other organizations involved in the banking and oil sectors. The fact that shareholders are a mix of banks, commodities, and trading companies sets komgo apart from other trade finance platforms where investors tend to be banks.
At first, most of Komgo’s transactions came from oil and commodity companies using VAKT’s post-trade product blockchain, which has several common shareholders. Komgo started in Geneva and has already expanded to Singapore, with both locations being global commodity centers. A portion of the investment from this funding will be allocated to expansion into the United States, with New York and Houston already on-line.
In addition to the expansion, Komgo will also allocate funds for marketing to reach businesses beyond the pure commodities sector and invest in new features and refine its existing software solutions.
Komgo has developed four different solutions: konsole, market, check and trakk. “Konsole” is the leading service line for trade finance, “market” uses blockchain to help banks manage risk, “check” digitizes KYC exchanges, and “trakk” authenticates and tracks digital documents. The solution uses Ethereum enterprise blockchain technology.
The Covid-19 pandemic has resulted in increased demand for digital solutions across industries, which has contributed to the 50% increase in trade finance transactions on the Komgo platform and 65% growth of its customer base last year. ING said 50 of its commodity customers are using the solution. Komgo has many clients who are not shareholders, with 29 banks using the platform and 146 companies. Two that have been announced publicly include Lloyds Bank, and Sberbank.
“The nature of Komgo’s business, as a B2B financial software provider, means that it is essential to have the required institutional support,” said Souleïma Baddi, CEO of Komgo. “Our founding shareholder base has so far enabled the company to play a leading role in transforming trade finance.”
Meanwhile, Komgo bought a trade finance platform TRAFEC early 2020.