Flowdesk, a French crypto trading firm with expertise in market making and liquidity provision, has raised $52 million in an extension funding round, taking its overall funding to $102 million. The new capital, raised through a combination of equity and debt, will fuel the company’s expansion into new geographies and the opening of a dedicated crypto-credit desk.
Strategic Funding Breakdown:
The round was led by HV Capital in the equity component, with Eurazeo, Cathay Innovation, and ISAI VC also chipping in. BlackRock-managed funds contributed the debt capital. Interestingly, HV Capital has gained a seat on the board of Flowdesk in return for its investment.
Guilhem Chaumont, Flowdesk’s co-founder and global CEO, emphasized that the firm’s decision to take on debt was a strategic move to scale sustainably without significant equity dilution.
“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,” Chaumont explained, highlighting the company’s strong financial position and ability to repay debt easily.
Even with the funding, Flowdesk was not actively looking for new investments but was shown high interest from several investors, leading to the capital raise. The firm’s earlier $50 million Series B round in January 2024 valued it at $250 million. With this latest funding, the aggregate Series B funding is now $102 million.
Expansion Plans and the Crypto-Credit Desk:
Flowdesk is gearing up to take advantage of the increasing demand for the tokenization of real-world assets and it’s over the counter (OTC) derivatives operations. One key focus will be opening up a specific crypto-credit desk to bridge the gap in the market for lending services.
Beyond the crypto-credit initiative, Flowdesk is investing in proprietary trading infrastructure and enhancing compliance frameworks. Chaumont noted,
“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.”
In order to help its expansion, Flowdesk aims to double the size of its staff in a year. It will also have a new office in the United Arab Emirates to join its locations in France, Singapore, and the United States.
Regulatory Readiness and Future Outlook:
Flowdesk is proactively gearing up for the European Union’s Markets in Crypto-Assets (MiCA) regime, keeping it well-placed to serve the changing crypto market in Europe. The company’s regulatory compliance is a testament to its vision to be a leader in the institutional crypto trading segment while being transparent and scalable.
With this new capital, Flowdesk will be accelerating its vision to bridge the old financial world and the fast-developing crypto economy, solidifying its position as a leading global digital asset player.
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