LONDON — Fintech startup Algomi says it is in a strong position thanks to tie-ups with Euronext, AllianceBernstein, and S&P Global, as accounts show the business was in a tough spot financially at the end of last year.
UK-headquartered Algomi lost £15.5 million last year and ended 2016 with net liabilities of £6.2 million. Revenues in the year to December 2016 were £9.3 million but the business was pushed to a loss by administrative expenses of £22 million.
Management says in the accounts that the business will likely need to raise money to pay bills due in the year and auditors placed an “emphasis of concern” on the business’ going concern basis, meaning it was worried the business may not last another 12 months.
However, a spokesperson told Business Insider that tie-ups reached in 2017 have helped secure the company’s future, including a $US10 million investment and partnership with Euronext earlier this year.
The spokesperson said: “The significant growth in the Algomi network during 2016 has been rewarded with strategic partnerships, investments and 10-year deals in 2017, with firms such as Euronext, AllianceBernstein and S&P Global.
“The imminent launch of Euronext Synapse and Algomi ALFA are two such examples of this groundwork now coming to fruition.”
Algomi runs the Honeycomb Network, a platform that lets investors see which dealer is best placed to make corporate bond trades happen. Bank dealers enter potential trades into a secure network, which then matches those trades and suggests similar bond trades if the ones desired are unavailable. The startup was set up by former UBS bankers in 2012.
Algomi’s spokesperson said: “We are undergoing an exciting stage of development at Algomi, growing our global network of fixed income traders and expanding our product portfolio to offer a full suite of solutions to our clients. We’ve made significant investments in both product development and scaling our liquidity network, bringing this up to 250 buy-side firms and 20 banks.
“Our priority is to continue to on-board new institutions, while working closely with our strategic partners to deliver a number of new initiatives to market.”
Algomi has over 140 staff across the UK and US.
- Credit Card Industry and Market
- Mobile Payment Technologies
- Mobile Payments Industry
- Mobile Payment Market, Trends and Adoption
- Credit Card Processing Industry
- List of Credit Card Processing Companies
- List of Credit Card Processing Networks
- List of Payment Gateway Providers
- M-Commerce: Mobile Shopping Trends
- E-Commerce Payment Technologies and Trends
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.