TL;DR
- Flowdesk, a leading crypto trading firm, has raised $52 million to enhance its services and scale its operations.
- The funding, comprising 80% equity and 20% debt, will support the creation of a dedicated crypto credit desk and the opening of an office in the UAE.
- The company experienced significant revenue growth in 2024, with plans to expand its workforce and build infrastructure to capitalize on rising crypto adoption.
Flowdesk, a market maker and liquidity provider headquartered in France, has successfully raised $52 million in a funding round that blends equity and debt financing. This strategic move will allow the company to further its mission of enhancing crypto services and expanding its reach globally.
The funding round was led by HV Capital, a prominent European investor, alongside participation from notable firms like Eurazeo, Cathay Innovation, and ISAI VC. The capital injection includes $10.4 million in debt financing, provided by BlackRock-managed funds, while the remaining 80% is equity. This mixed funding structure aligns with Flowdesk’s growth strategy, with co-founder and CEO Guilhem Chaumont emphasizing the value of taking on debt as a non-dilutive option to scale efficiently.
The firm, which specializes in crypto trading, market making, and liquidity provision, has experienced impressive growth in 2024. Chaumont revealed that Flowdesk’s revenue has surged eightfold over the past year, underscoring the increasing demand for crypto trading services. Despite declining to disclose specific revenue figures or trading volumes, Chaumont confirmed that Flowdesk ranks among the top liquidity providers across 150 platforms, solidifying its position as a key player in the crypto space.
Expanding Services with a Focus on Crypto Credit and Tokenization
With the newly acquired capital, Flowdesk is set to launch a dedicated crypto credit desk aimed at bridging a gap in the market for crypto lending and borrowing. The desk will cater to institutional clients, providing tailored financial services such as collateralized loans backed by digital assets like Bitcoin. Chaumont noted that the desk would offer competitive rates for both high-net-worth individuals and institutional borrowers, a vital service for the growing demand for tokenization and crypto finance.
In addition to the crypto credit desk, Flowdesk plans to bolster its proprietary trading infrastructure and expand its compliance efforts to align with upcoming regulatory frameworks like the European Union’s MiCA. The firm also has plans to double its workforce and establish a new office in the UAE to further enhance its global presence.
As crypto adoption continues to rise, driven by institutional interest and regulatory clarity, Flowdesk’s expansion plans position it to capitalize on these trends and provide innovative solutions that meet the needs of an evolving market.
