London-based risk management platform MillTech has successfully secured a $60 million minority investment from Apax Digital Funds. This strategic funding round places the fintech company at a new valuation of $325 million. The capital injection is earmarked to fuel the company's ambitious expansion into North America and to further develop its advanced treasury management solutions.
Addressing a Critical Market Need
MillTech is tackling a significant challenge within the vast foreign exchange market, where many firms still rely on manual, fragmented processes. A recent company survey highlighted this vulnerability, revealing that eight out of ten companies suffered losses from unhedged currency exposure. These findings underscore a multi-billion-dollar problem that demands modern, technology-driven solutions to mitigate financial risk effectively and efficiently.
The company's platform provides a comprehensive solution by automating the entire FX hedging and investment lifecycle into a single interface. It integrates trade calculation, execution, settlement, and reporting, offering clients unprecedented control and transparency over their operations. By centralizing these functions, MillTech helps organizations strengthen governance and embed greater discipline across their treasury workflows.
Strategic Growth and Expansion
This new investment from Apax Digital is set to catalyze MillTech's next phase of significant growth and market penetration. The primary focus will be on accelerating its expansion across North America, a key market for treasury and risk management services. This strategic push is supported by the company's impressive performance, which includes reported revenue growth of 79% in 2024.
MillTech distinguishes itself by operating independently from counterparty banks while ensuring seamless connectivity with a client's existing service providers. This unique model provides direct access to the wholesale multi-bank market, delivering average cost savings of over 50% for its users. The platform supports client hedging programs totaling over $35 billion, with annual trading volumes reaching approximately $500 billion.
A Partnership Built on Experience
The partnership between MillTech and Apax is particularly noteworthy, as Apax is not only an investor but also a client. This dual relationship serves as a powerful endorsement of the platform's value, with Apax utilizing its capabilities across several of its own funds. The connection is further deepened by the fact that Apax co-founder Sir Ronald Cohen was an early backer of the fintech firm.
The funding will also support the enhancement of MillTech's innovative product suite, which includes recent additions like an automated cash management tool. Developed in collaboration with BlackRock's CacheMatrix, this feature helps firms improve returns on cash balances. Additionally, the company launched Co-Pilot, an AI-enabled advisory solution that assists clients in modeling hedging strategies and optimizing cash deployment.
This $60 million investment marks a pivotal moment for MillTech, validating its disruptive approach to treasury management and risk mitigation. The backing from a prominent investor and client like Apax Digital provides a strong foundation for its planned global expansion. As currency volatility continues to pose a challenge for businesses, MillTech is well-positioned to lead the industry with its innovative, technology-first solutions.