Irish FinTech company, Fineos, primarily known for its prowess in the insurance software segment, has impressively clinched a $40m investment to fortify its financial foundation.
The substantial amount is broken down into two main components: a full $35m institutional placement and a conditional $5m placement exclusively from Fineos’ founder and CEO, Michael Kelly, according to a report from Silicon Republic. However, the approval for the $5m chunk rests on the forthcoming securityholder consensus at the annual general meeting, slated for the close of this year.
Digging deeper into the Fineos story, the company, established in 1993 by the vision of Michael Kelly, focuses its efforts on devising software solutions tailored for life, accident, and health insurance carriers. Their influence is undeniable, with over 50 global clients, counting industry heavyweights like Aviva, APL, Amica, FBD, and New Ireland amongst their clientele.
Intentions for the freshly acquired funds are clear: to relentlessly drive the growth trajectory of Fineos and ensure a smooth regulation of cash flow timelines. This comes at a time when acquisitions form the backbone of Fineos’ expansion plans.
Notably, the company acquired Limelight Health in 2020 for $75m, a firm recognised for its innovative approaches in redefining sales and underwriting functions for group benefits insurance. The subsequent year saw the addition of Spraoi to the Fineos family, enhancing the company’s machine learning capabilities for group life and employee benefits sectors.
Echoing the company’s ambitious road ahead, Fineos CEO Michael Kelly said, “The placement proceeds significantly strengthen our capital position and provide Fineos with the financial flexibility to deliver on our growth strategy. We thank our security holders for their unwavering support of Fineos.”
Lastly, it’s worth noting that 2021 wasn’t the maiden funding endeavour for Fineos. The company previously amassed €44m through an institutional placement in Sydney. These funds were efficiently channelled towards research & development, and unlocking fresh avenues of growth.
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