Fineos Raises $40 Million To Improve Its Financial Position

Fineos, an insurance software company based in Ireland, has raised $40 million to strengthen its balance sheet and offer general working capital. According to the company’s founder, Micheal Kelly, the new equity will enhance its financial position while demonstrating the solid support it has received from backers.

Fineos raises $40M to strengthen its balance sheet

The funding round announced by the company now features a fully underwritten $35 million institutional placement and a $5 million conditional placement from the company’s founder. The $5 million placement announced by the company is subject to a security holder approval being secured during the AGM, held at the end of 2022.

Fineos was started in 1993 by Kelly. The firm focuses on creating the software systems needed by accident, health insurance, and life insurance carriers. The company also boasts a vast customer base of 50 institutional investors globally. These investors include Amica, APL, Aviva, FBD, and New Ireland.

In 2019, Fineos was listed on the Australian securities exchange through an initial public offering. The company witnessed steady growth in the subsequent years, with the revenues reaching €108.3 million by June 2021. The total revenues that Fineos reported during the financial year that ended on June 30, 2022, hit €127.2 million.

The employee headcount reported during the period also reached 1,075. The expansion of Fineos has primarily been attributed to these acquisitions. In August 2020, Fineos announced the purchase of Limelight Health for $75 million.

Limelight Health is used to create the products needed to streamline and automate sales. The platform completes underwriting functions that benefit insurers. In 2021, Fineos announced the acquisition of Spraoi, which provides machine-learning features for group life and helps employees across the industry.

Funding to support Fineos growth plans

The latest batch of funding will be used to continue the growth plans by the company and boost flexibility for timing the cash flows. Kelly has also said the company was pleased with this equity-raising result while calling for the ability to the “clear testament to Fineos” to deliver the company’s focused strategy.

Kelly also noted that the placement has strengthened the company’s capital position. The offering will also give Fineos the financial flexibility needed to support the company’s growth strategy. The executive also noted that security holders had strengthened their support for the Fineos platform.

It is not the first time that Fineos has secured the funding needed to support operations. In 2021, the fintech company secured €44 million through institutional placement across Sydney. The funding round offered the required working capital to support research, development, and growth opportunities. The offering will also expand the company’s operations across Asia Pacific, EMEA, and North America.