FLOWX.AI - an enterprise platform that enables banks and financial institutions with complex IT infrastructures to build fast modern digital experiences unbounded from the limitations of their legacy systems - has raised $8.5 million in their seed round. The round, which is one of the largest European seed rounds this year was led by PortfoLion. Other institutional investors are Day One Capital and SeedBlink.
The company will use the capital to expand in Europe and US, expecting to grow the team with more than 20 people by the end of Q1 2022 to face the surging demand from Banking and other Financial Industry companies worldwide. Also, the engineering and data science team will increase bandwidth to enhance the AI components and develop new functionality.
FLOWX.AI Inc was founded in late 2020 by Ioan Iacob - CEO, Serban Chiricescu - CTO, and Radu Cautis and started operating in 2021. Previously, Ioan, Serban, and Radu have worked together in the award-winning digital transformation consulting company - QUALITANCE. There, the founding team developed the product that would become FLOWX.AI and implemented it with global enterprises, thus benefiting from a solid product-market fit. Radu Cautis, who leads the company strategy, is also a Silicon Valley VC.
The company tackles a $500 billion challenge - enterprise legacy systems. Each year, the banking industry alone spends over $200 billion on technology, and 85% of it goes to “running the bank” - infrastructure maintenance and regulatory updates.
FLOWX.AI helps financial institutions create unified, omnichannel customer and employee experiences without changing their existing systems and infrastructure - and then to enable a smooth “core revival” modernization of their legacy systems, instead of the typical high-risk and disruptive “rip-and-replace.”
The platform enables financial institutions to launch complex solutions in just ten weeks - mortgage, pre-approved lending, onboarding - without requiring them to change their existing systems. FLOWX.AI also addresses use cases in the Power and Utility, Telco, and CPG industries, to help increase operational margins, digital-driven revenues, and accelerate innovation. The platform is deployed by the largest bank in Southeastern Europe - Banca Transilvania, Vienna Insurance Group, and OMV.
Based on a novel architectural paradigm, FLOWX.AI enables smooth and fast integration of existing systems. It consists of an infrastructure-agnostic layer deployed in the cloud or on-prem, consolidating existing systems into unified, easy-to-use applications for web and mobile, and offering high scalability and reliability even on top of legacy systems.
“This seed funding, less than a year after starting FLOWX.AI, proves that the problem we address is massively painful - legacy infrastructure is holding back enterprises from growing. This financing will support us in extending our offering globally, to giving companies back the freedom to build to more - together with our expanding network of global consulting and system integration partners”, Ioan Iacob, FLOWX.AI CEO, and co-founder.
“FLOWX.AI has a huge market potential with a plausible promise of fast becoming a global player in digital transformation. Their solution stands out as it provides unmatched speed and security for modernizing the legacy systems of large enterprises. In an era of developer shortage, it’s fascinating to see such excitement and inbound interest from the developer community. We are excited to work together with the team in the coming years”, said Gábor Pozsonyi, Partner at PortfoLion Capital Partners.
“It is no secret that most enterprises are constrained by the myriad of legacy systems which hinders them to serve their customers with digital experiences they deserve. The team has built a platform to empower companies with complex systems to focus more on what they do best: their core business. The FLOWX.AI platform allows financial institutions to build new products on top of their existing infrastructure with an order of magnitude improvement in speed while enabling advanced data capabilities to drive value for all stakeholders. We are delighted to support the team in their journey.” György Simó, General Partner at Day One Capital
“The interest and support of SeedBlink's investors in FLOWX.AI's has been rewarding, as they all recognized the opportunity ahead and wanted to be part of the next phase of FLOWX.AI's growth journey. We were excited to join forces with Ioan, Serban, and their crew of professionals. Their team has remarkable expertise, especially for a company at this stage, and the execution and traction to date have been outstanding. We look forward to helping the company increase the speed of innovation”, states Laurențiu Ghenciu, Chief Business Officer SeedBlink.
FLOWX.AI enables financial institutions and large enterprises to rapidly transform their employee and customer-facing processes into unified, omnichannel digital apps - without requiring changes in legacy technology, without the need for deep tech skills, and only at a fraction of the typical cost.
With the novel ZeroRedeploy™ technology - which enables 10x-100x efficiency versus traditional development or the current generation of low-code-no-code tools - FLOWX.AI is used by large and complex enterprises from financial services - such as the largest bank in SEE (Banca Transilvania) and Vienna Insurance Group, as well as enterprise clients in the energy and utility sector - such as OMV. For more information, please visit www.flowx.ai
A member of OTP Group, CEE’s largest banking group, PortfoLion is a Budapest-based venture capital and private equity firm investing at all stages from Seed through Series B to Buyout. With a sector-agnostic investment strategy, PortfoLion seeks to back visionary founders with a global growth mindset and scalable digital products. The fund manager currently has over 25 active investments in its fund range, including SEON, Novakid, OneSoil, Starschema, and Codecool. Notable exits include Tresorit, Banzai Cloud, and Cryo Management, sold to Swiss Post, Cisco, and VitroLife. PortfoLion is actively looking to invest a total of €400 million across Europe. Learn more at portfolion.hu
ABOUT DAY ONE CAPITAL
Day One Capital is a leading early-stage venture capital firm based in Budapest. The Fund strives to back exceptional founders from the CEE region to realize their global ambitions. It focuses on B2B software startups across multiple industries with strong technological foundations and supports them from the earliest stages to the growth stage with hands-on operational support. See their portfolio and more at dayonecapital.com
SeedBlink is the fastest growing investing platform specialized in sourcing, vetting, financing, and scaling European tech start-ups. The company aims to simplify the investment process for retail and accredited investors by combining crowd reach, business angel flexibility, and Venture Capital expertise, all in one internet platform. For more information, please visit www.seedblink.com