AI Startup Updating Old Finance Systems Raises $35M
Artificial intelligence (AI) startup company FlowX.AI secured $35 million in a new funding round led by Dawn Capital. The company operates an AI-powered platform designed to improve the digital infrastructure of banks and help them launch services faster.
FlowX.AI is Already Collaborating with Big Banks Like BNP Paribas and OTP
FlowX.AI, an AI startup developing a platform that seeks to modernize application systems and infrastructure used by legacy banks, announced on Monday it had raised $35 million in a Series A funding round led by the London-based early-stage investor Dawn Capital. Other investors participating in the round include PortfoLion, SeedBlink, and DayOne Capital.
The AI startup is headquartered in New York, while its engineering team is based in Romania. Meanwhile, all the company’s existing investors are European. The company said it will use the funding to facilitate the development of its products and fuel global expansion.
The startup primarily co-operates with established enterprises in the financial sectors, such as BNP Paribas, Alpha Bank, OTP, and Banca Transilvania, while relying on third-party organizations like KPMG and IBM, among others. Since its launch, the startup claims that around 30 million users have used FlowX’s products and services built using its platform.
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FlowX Counting on AI to Beat Competitors
Founded in 2021, FlowX.AI aims to fundamentally change how large legacy banks develop core digital products by helping them update their infrastructure. One of its key objectives is to help these big legacy players roll out new services faster to better compete with traditional and neo banks.
FlowX is not the first startup working on a solution to tackle these issues. Companies such as Boomi, MuleSoft, Sapho, and Snaplogic have built similar platforms for years. However, FlowX is trying to stand out from the competition by adding AI technology to automate integration, application building, and service development processes that businesses are still doing manually.
The startup’s latest financing round represents a part of the broader trend of venture capitalists flocking to invest in AI to capitalize on the ongoing sector frenzy. Last week, a Bloomberg analysis found that AI could lift US net profit margins by 4% over a decade.
Do you think AI will be the key technology powering the application systems of banks and financial institutions in the future? Let us know in the comments below.