Friday 17 January 2020

Sales at fast-growing Dublin fintech Fenergo rise to €70m

Investment: Fenergo CEO Marc Murphy is keen to focus on growth
Investment: Fenergo CEO Marc Murphy is keen to focus on growth

Shawn Pogatchnik

Irish financial technology firm Fenergo has reported a 21pc gain in revenue to €70m as it doubles its R&D team and targets new markets worldwide.

The regulatory software and data specialist in the past year has secured deals with a number of corporate, commercial and retail banks, including in Japan and Australia.

Fenergo products are used for so-called customer onboarding, anti-money laundering and other compliance checks by 26 of the world's 50 biggest banks.

Clients include UBS, BNP Paribas, Scotiabank and the Australia and New Zealand Banking Group.

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The 10-year-old company based in Dublin is in the midst of expansion, following a €66m equity investment in June by DXC Technology.

Fenergo's accounts for the year ending March 31, published today, show strong growth in its biggest markets in the UK, US and France, and gains in Singapore and Australia.

Sales of services rose by 15pc to €43.6m, licensed software by 35pc to €20.7m, and support and maintenance by 29pc to €5.8m.

The accounts also show a 44pc increase in staff over the year to 414 employees at year-end.

CEO Marc Murphy said that since then, Fenergo has hired another 300 staff worldwide, particularly in R&D.

Fenergo's careers site has 44 open positions, chiefly in Dublin and Sydney.

While gross profits rose 20pc to €38m, a 117pc increase in R&D spending tipped the previous 2018 operating profit of €2.6m into an operating loss of €5.4m.

But Mr Murphy said he and Fenergo's main shareholder, New York venture capital firm Insight Partners, are focused on winning clients, developing products and services, and building market share.

"We're investing and that's a good thing," he said.

"We're able to take our money and invest hard. Insight Ventures' businesses are all about investment and growth.

"My CFO pushes us to be profitable. The Insight guys are saying, 'spend our money! Go faster! Come on, the market's there'."

He added: "We could tone down investment in R&D, and sales and marketing, and record a profit in almost one quarter.

"But as long as I'm CEO and backed by Insight, this is going to be a growth-focused business, investing heavily in Irish jobs and building a great global company."

Fenergo is approximately 50pc owned by Insight Ventures, 20pc by DXC, and 30pc by Mr Murphy and other staff. "A majority of the staff are shareholders," he said.

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