The FinTech company Investiční Aukce (“iA”) was acquired by the investor of Echilon Capital, represented by exCEO PPF Investment Jiří Rydvan, CFO ZOOT Petr Ladžov and the CEO of ZOOT Ladislav Trpák. Echilon Capital is the second largest partner of iA, holding a larger minority in the company.
- Echilon Capital plans to invest as much as 1,5 million EUR in the next year
- The obtained funds will be used for the expansion of the company on the domestic market
- Adam Šoukal, founder and CEO of iA continues to be the majority partner
- Since 2013, iA has financed invoices in excess of 30 million EUR
- The average return for current investors was 5.9% p.a.
- The average maturity of funded invoices is 58 days
- Year-on-year revenue growth reached 75%
- In 2017, iA expects an annual funded volume of 20 million EUR and a similar increase in revenue.
Investiční Aukce, which achieved double-digit growth in 2016, was acquired by the investor, Echilon Capital (“EC”). This now holds a higher minority in iA. EC is represented by ExCEO of PPF Investment Jiří Rydvan, CFO and co-owner of ZOOT Petr Ladžov and the founder, CEO and co-owner of ZOOT Ladislav Trpák. The iA platform is the largest of its kind in the Central European region.
The payment institution Investiční aukce s.r.o. cooperates with large, often multinational, companies that address supplier requirements for shortening the maturity of invoices. The platform has thus found a solid position on the financing market of SME that deliver high-quality products and services to large companies but are often plagued by long invoice maturity requirements.
“At iA, we have found unique FinTech project, which has been profitable from the beginning,” says Jiří Rydvan, CEO of Echilon Capital. Petr Ladžov, a partner of Echilon Capital, adds: “We are convinced that thanks to the volume of the domestic invoicing market, exceeding 7 billion EUR per year, iA has a great potential for growth. iA is unique not only because of the use of EDI but also in almost zero fraud rate. Now we are focusing on increasing the profitability of the volume of funded receivables and attracting creditworthy SMEs that will be attractive to investors.”
“We chose from three offers that gave us 30 % more money. Not only the direction we want to pursue, but above all the vision of the same future for iA was decisive for Echilon Capital. Thanks to an investment from Echilon Capital, we can strengthen our staffing and focus on expansion and growth in the domestic market. This year we are aiming to finance a volume of invoices reaching 20 million EUR. In 2018, we would like to reach 40 million EUR. We mostly finance e-commerce and FMCG,” said Adam Šoukal, CEO and co-founder of Investiční Aukce, who went on to say: “We are currently the only P2P invoice trading platform for small and medium-sized enterprises in the Czech Republic with a fully digitized document system that is safe for investors and not administratively demanding for those interested in financing. We have obtained a payment institution license from the CNB and implement EDI electronic invoicing into our processes. We are preparing for the new opportunities that EU PSD2 will bring. We focus on companies that have receivables from large market players. We cover their need for cash flow in both Czech Crowns and Euros up to 120 days. We work with a number of large companies to finance their supply chain. Our solution is interesting both for CFOs of large companies and for their business partners. We do not require an annual guarantee from our clients, nor do we penalize them. We finance 75% of the nominal value of the invoice in advance and selected invoices are also insured on our platform. Thanks to our conservative approach, we are able to manage the risks well, as documented by a deposit loss of only 0.09% in 2016. In the past 3 years, we have been completely free of defaults. We have been a technology-driven company generating profit from the beginning. Our growth would not be possible without the confidence of more than 120 companies and 400 investors.”
About Echilon Capital:
Echilon Capital is a venture capital investment company with a focus on the Central European region based in Prague. It invests in future stars, especially in the field of the development of nonbanking services and e-commerce. Echilon Capital is not a boring or rigid investment company, but a group of entrepreneurs who want to materialize innovative ideas together with similarly-minded “start-ups” to help improve the world around us. More at www.echilon.com.
About Investiční Aukce:
iA (Investiční Aukce) is the operator of the largest peer-to-peer invoice trading platform in Central Europe. Since 2013, the platform has been successfully connecting investors and credible businesses looking for cash-flow solutions. In 2016, iA acquired an investor, the technology company CCV. With this move, the FinTech company Investiční Aukce opened the way for automated financing of small and medium-sized businesses through EDI electronic invoicing, with CCV being the largest supplier for the domestic market. The investors help hundreds of businesses grow and realize above-standard revenues with predictable levels of risk. Thanks to the JIC PLATINN program, iA obtained a large payment institution license from CNB. More at www.investaukce.cz.