Commodity trade finance platform Komgo has acquired Canada-based GlobalTrade Corporation (GTC) for an undisclosed sum, GTR can reveal.
Established in 2002, GTC is a provider of solutions for large corporations and financial institutions through its @GlobalTrade multi-bank trade finance platform, which connects corporations to their financial institutions by automating and digitising letters of credit, bank guarantees, documentary collections and supply chain finance.
Komgo, whose shareholders are a mix of corporate and financial players including ABN Amro, BNP Paribas, Citi, Consensys, Crédit Agricole, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG, Natixis, Rabobank, SGS, Shell, SMBC, Société Générale and Total, went live at the end of 2018. It has developed products to streamline the often paper-intensive commodity trade finance process, including Trakk for document fraud checking and Konsole for trade finance.
Jointly, the two companies provide trade finance digitalisation solutions to over 120 multinational clients and over 11,000 subsidiaries, connecting them to their financial institutions and trade service providers.
“Together Komgo and GTC will provide the widest coverage, and biggest volumes, for our corporate and bank users,” says Souleïma Baddi, CEO of Komgo. “We are combining Komgo’s commodity expertise with GTC’s industry expertise, consolidating the market for digital trade services. Trade finance is moving to a digital framework, and we’re proud to be at the forefront of this transition.”
Jacob Katsman, GTC’s chairman, adds that the industry “has been waiting for this consolidation.”
“Together with Komgo, we can now connect corporates to all their financial institutions for trade finance irrespective of what back-office system they use,” he says. “Solutions offered by both companies are complimentary and cover the complete range of payment instruments used in international trade, starting from detection of fraudulent invoices to automation and management of letters of credit, bank guarantees, documentary collections; integrated with a trade finance marketplace.”
Last year, Komgo closed its third funding round, raising CHF26mn (US$28.9mn) from its existing shareholders and new investor SMBC, alongside an additional new investor that has not been named.
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