French crypto trading firm Flowdesk has raised $102 million in a mix of equity and debt financing to expand its market-making and liquidity services.
The company, which specializes in crypto trading infrastructure, secured 90% of the funding through equity, while the remaining 10%—approximately $10.2 million—came in the form of debt, according to Fortune.
The funding round was led by European investor HV Capital, with participation from French private equity firm Eurazeo, Cathay Innovation, and ISAI VC.
BlackRock Backs Flowdesk with Debt Financing in $102M Funding Round
The debt financing was provided by funds and accounts managed by BlackRock, Flowdesk announced on Tuesday. As part of the deal, HV Capital has secured a board seat at the company.
Flowdesk’s CEO and co-founder, Guilhem Chaumont, emphasized the complexity of liquidity management in the crypto market compared to traditional financial markets.
“Liquidity in crypto is very, very complex, much more complex than in traditional markets, where usually it’s a single venue and a single asset pair,” Chaumont told Fortune.
“For this to have liquidity everywhere at any time, you basically need more coverage.”
He added that Flowdesk’s approach involves providing liquidity across a broad asset range and multiple exchanges.
Chaumont also explained the decision to include debt financing, saying it allows the company to maintain greater control while bolstering its cash reserves.
“We are not going to scale our balance sheet with 100% equity, because that would lead to too much dilution,” he noted.
“At the same time, we don’t want to wait for our profits to build that balance sheet, because it’s going to take years.”
While specific terms of the debt agreement remain undisclosed, Chaumont expressed confidence in repayment, citing the company’s rapid growth and profitability.
He revealed that Flowdesk’s annual revenue grew eightfold in 2024 but declined to share exact figures.
Flowdesk operates multiple revenue streams, including subscription-based services, fees from over-the-counter (OTC) trading, and proprietary trading—where the company invests its own capital in various assets.
The firm competes with major crypto market makers such as Galaxy Digital, Cumberland, and Jump Crypto.
However, Chaumont believes Flowdesk differentiates itself by combining financial services with proprietary technology, allowing it to efficiently facilitate trading for clients.
Flowdesk’s Total Funding Reaches $182M After Latest Investment Round
The latest funding round follows a $50 million Series B raise led by Cathay Innovation in January 2023, bringing Flowdesk’s total funding to $182 million since its founding in 2020.
While Chaumont did not disclose the company’s current valuation, he confirmed plans to use the new capital to expand its workforce, hiring 100 employees over the next 12 months, adding to its current team of 150.
Flowdesk’s funding comes amid increasing institutional interest in crypto, clearer regulatory frameworks, and a growing market for tokenization.
This comes amid bullish forecasts regarding the growth potential of the tokenizaiton market.
McKinsey & Company recently reported that tokenized financial assets have had a “cold start” but are still expected to grow to a $2 trillion market by 2030.
Meanwhile, a report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates the global value of tokenized illiquid assets will reach $16 trillion by 2030.
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