FlowX.AI raises $35m to transform application modernization at large banks
FlowX.AI, the AI enterprise application modernisation platform for large financial services organizations, announced it has raised a $35 million Series A funding round. The round was led by London-based Dawn Capital, Europe's leading specialist B2B software investor, with existing investors PortfoLion, SeedBlink, and DayOne Capital participating. FlowX.AI will use the funds to fuel further product innovation and pursue global expansion.
The company was launched in 2021 by three co-founders Ioan Iacob, Radu Cautis and Serban Chiricescu, and within two years has secured partnerships with large system integrators and driven hundreds of millions of dollars in ROI for leading financial institutions across Europe. Major clients already include leading European banking group OTP, which has $85 billion in AUM, the largest bank in South Eastern Europe, Banca Transilvania, as well as one of the largest banking groups in Central Europe, Alpha Bank.
Today the business has a team of almost 50 people across Europe and USand is embarking on rapid expansion with a view to becoming the global go-to solution in the space of enterprise application modernization.
Ioan Iacob, Founder and CEO, FlowX.AI: For a long time enterprises have been promised useful tools for modernizing their business. Many promises have been made over the years related to speed of digital product development, no code / low code, citizen programmers, and many others. But these promises have not been kept. Instead, enterprises got a thousand disjointed point solutions and ended up captive to inflexible solutions, vendors, and proprietary technologies. FlowX.AI addresses this problem. We are proud our platform has been consistently enabling customers to accelerate application modernization in an unprecedented way: what used to take years is now being done in weeks. We've now truly proven our product and are ready to bring FlowX.AI to even more customers. Our Series A funding will allow us to bring to market a number of innovations that will bring AI to enterprise on a large scale, and to expand our geographic footprint."
FlowX.AI was originally founded as an application modernization platform to solve a trillion-dollar problem for financial institutions: how to quickly build mission-critical modern digital solutions on top of complex legacy systems.
Until now, large banks and enterprises operating on legacy infrastructure have been spending huge sums on maintaining old systems while creating new apps and products. To put this into context, companies worldwide spent almost $2 trillion on digital transformation projects last year and software errors cost the US economy alone more than $2 trillion. These projects are not only expensive; they are often slow, require intense tech talent input, and can go significantly wrong when risky "rip and replace" processes on core legacy systems are attempted. (For example, one UK retail bank was recently fined for failings that occurred as it migrated from legacy to new software – a migration that saw 1.9 million customers locked out of their accounts for five days).
Evgenia Plotnikova, General Partner, Dawn Capital: "Tech innovation continues to accelerate, yet the businesses that underpin our everyday lives are running on century-old technology. We can use our phones to get AI to generate a travel itinerary in seconds, but it takes years for our banks to offer new mortgage products. Enterprise leaders want to rapidly increase the pace of change, and FlowX.AI offers an elegant and intuitive solution. It abstracts away horse-and-carriage legacy infrastructure, and ensures users are only ever exposed to a spaceship experience. Ioan and his team are further proof that tech innovation is on fire across Europe, and we are thrilled to be supporting them as FlowX.AI becomes a truly global player."
The platform's capabilities mean that large enterprises can develop within weeks, rather than years, modern digital capabilities which are essential for them to remain competitive and even to survive. New products built on the FlowX.AI technology require minimal maintenance going forward, helping future-proof tech stacks and budgets, and reducing the cost of infrastructure.