Currency risk management startup Finofo closes new funding
Finofo, a Canadian startup providing accounts payable automation and currency risk management, has raised US$1.25 million in funding led by Motivate Venture Capital, the company tells Axios exclusively.
Why it matters: Managing currency risk is a major headache for businesses operating across international markets.
How it works: Calgary-based Finofo provides a free-to-use platform that makes it easier for business finance teams to manage banking and payments across multiple currencies.
- The service enables Canadian businesses to send or receive money in more than 40 currencies across 180 countries.
- Users can also access global bank accounts and manage domestic and international invoices from a single platform.
- The startup currently makes money off FX spreads and interchange for currency exchange and transactions made through its platform.
Between the lines: Beyond some very large multinational corporations, very few international businesses are using tools to reduce their currency exposure, says Finofo CEO Prateek Sodhi.
- "There's a better way of doing things. It's just not many people are really doing it," Sodhi says.
What's next: Finofo plans to launch tools to help customers understand their currency exposure over time and to hedge that exposure by giving them access to foreign exchange derivatives.
- Sodhi says a future release will include a financial planning platform that will allow businesses to upload their budgets and calculate their currency risk going forward.
Of note: SaaS Venture Capital, Desjardins Financial Holding and Sweet Spot Capital also participated in the financing.