InstaNext, based in Bentonville Arkansas, may not be a widely-known brand in CTRM/CM, but they have notched a number of impressive wins in the last couple of years and are a company, and a product, that is competing and winning against many of the longer established and better-known solutions in the market. We recently had the opportunity to visit with Marc Zabal, VP of Product Development and Richard Kulaszewski, EVP of Global Field Operations to find out more.
InstaNext was founded in 2012 by Elie Zabal, a name familiar to many in this market as the founder and CEO of INSSINC. Mr. Zabal’s company, and their hedge/risk management solution Futrack, was acquired by TriplePoint in 2008 (which of course was itself subsequently acquired by ION in 2012). Departing TriplePoint/ION after that acquisition, Mr. Zabal launched InstaNext and reformed his team with many of the key players that made INSSINC successful.
With an all US-based development team, the company has built-out their product, the InstaNext Platform, with an array of capabilities that has led to successfully closing numerous sales with energy and ags companies, including a string of impressive wins in the last two years with very large companies like Newfield Energy, Rich Products, and Campbell Soup. Other wins include numerous mid-sized E&P’s, utilities, and ags/CPG firms, primarily across the US and Canada. Providing coverage of almost all commodity asset classes – including most energies, softs, ags and metals – their client base is split almost evenly between energies and non-energies.
The InstaNext Platform is available as either a hosted in the cloud solution or as an on-premises install and is SOC 1 compliant. It competes with the traditional CTRM/CM players across a number of functional categories, including trade capture and position management, hedge coverage and effectiveness, bill of materials management (to identify and capture hedgeable components), and risk analysis. Richard indicated that one of the key selling features of the platform was their strength in reporting and the ability to create custom dashboards. Additionally, the product offer market data and price curve management capabilities with established interfaces to several exchanges and price services. For companies that have an existing CTRM/CM solution but need additional capabilities to better identify & manage hedging opportunities, or need BOM insights, Marc notes that they can interface with those legacy systems, providing increased capabilities without a full system replacement.
Driven by the momentum of almost two dozen announced wins in the last two and half years, and with continuous additions of functionality, we expect that InstaNext will be a much more common name in the CTRM markets in the very near future.