Fintech Firm Capitolis Raises $220 Million at $1.9 Billion Valuation
Fintech firm Capitolis announced a $220 million funding round, including a $120 million Series E at a $1.9 billion valuation, led by Citi with major global banks.
Fintech company Capitolis, which has developed a platform enabling banks and financial institutions to optimize market operations through collaboration, announced a $220 million funding round. The round includes a $120 million Series E equity financing at a valuation of $1.9 billion, alongside debt financing. In its previous funding round in 2022, the company was valued at $1.6 billion.
Strategic Investments and Growth
The equity round was led by existing investor Citi, with participation from new strategic investors including Bank of America, Nomura, and Tradeweb Markets, alongside existing investors UBS, Barclays, BNP Paribas, J.P. Morgan, and State Street. Debt financing was provided by First Citizens Innovation Banking, Hercules Capital, and Pinegrove Venture Partners. Capitolis works with major global banks to develop tools designed to optimize market activity, allowing institutions to share resources and transactions to improve capital efficiency and minimize risks.
"This funding round is a significant milestone for Capitolis and a strong vote of confidence in our vision and ability to execute it," said Gil Mandelzis, founder and CEO of Capitolis. "Capitolis is experiencing very high growth, and the mobilization of the world's largest banks to support the company as investors is a testament to its becoming a major strategic partner for them."
Acquisition and Financial Strategy
Speaking about the decision to combine equity with debt, Mandelzis explained that debt is cheaper for the company as it approaches a stage of high cash generation. Most of the capital is earmarked for the acquisition of eSecLending for $200 million, a deal announced the previous week. The acquisition will introduce securities lending activities to the platform, expand access to institutional asset holders, and broaden the company's product offerings.
