Dutch bank ABN Amro is investing around €6m in Fenergo as part of the Irish banking tech firm’s latest funding round.
ABN Amro in Amsterdam confirmed its investment today but did not publicly disclose the level of that investment.
But the Irish Independent understands that ABN Amro’s contribution is included in a months-long funding round concluding today that totals nearly $80m (€72m). The other, much larger component of that investment - by New York-based DXC Technology - totals €66m and was previously disclosed.
Fenergo, a regulatory software and data specialist founded by chief executive Marc Murphy a decade ago, today employs about 800 people - half in Dublin, the rest at 13 locations overseas including its newest bases in Melbourne and Dubai.
“We are very happy to add Fenergo to our investment portfolio,” said ABN Amro Ventures director Hugo Bongers. “This investment will contribute to ABN Amro’s strategic priority to build a future-proof bank and fight financial crime. We are impressed with the management team and solution Fenergo offers. In addition, this gives us additional exposure to a group of tier one investors.”
Fenergo confirmed that DXC’s investment in Fenergo - disclosed by the company in June 2019 - gives DXC approximately a 10pc equity stake in the company, not 20pc as Mr Murphy had said in an Irish Independent interview in December.
Fenergo’s major external investor since 2015 has been New York venture capital firm Insight Partners, which retains more than 50pc of equity. PNB Paribas is another equity holder.
Fenergo products support anti-money laundering and other compliance checks by a majority of the world's 50 biggest banks, as well as the efficient “onboarding” of new customers.
Last year Fenergo gained more than a dozen global banking clients including Banc of California, National Australia Bank, Canadian Imperial Bank of Commerce, UBS Asset Management, Anglo Gulf Trading Bank, Royal Bank of Canada, First Abu Dhabi Bank, Tricor, Exos Financial and Mizuho.
In December, Fenergo reported a 21pc gain in revenue to €70m for the year ending March 31. 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. But an 117pc increase in R&D spending produced an operating loss of €5.4m.