Irish fintech Fineos raises $40m for financial flexibility
Summary
The companys founder Micheal Kelly said the new equity strengthens its financial position and demonstrates strong support from its backers.Irish insurance software company Fineos has raised $40m to strengthen its balance sheet and provide general working capital.The funding raise comprises a fully underwritten $35m institutional placement and a $5m conditional placement from Fineos founder and CEO Michael Kelly. The $5m placement is subject to securityholder approval being obtained at the companys AGM at the end of the year.Fineos was founded in 1993 by Kelly and develops software systems for life, accident and health insurance carriers. The company has more than 50 customers globally, including Aviva, APL, Amica, FBD and New Ireland.In 2019, Fineos became listed on the Australian securities exchange through an initial public offering. Limelight Health creates products for streamlining and automating sales and underwriting functions for group benefits insurers.This was followed in 2021 by the acquisition of Spraoi, a provider of machine learning capabilities for the group life and employee benefits industry.The latest batch of funding will be used to continue Fineos growth plans and to maintain flexibility for timing of cash flows. Kelly said the company is pleased with the equity raising result and called it a clear testament to Fineos ability to deliver our focused strategy.The placement proceeds significantly strengthens our capital position and provides Fineos with the financial flexibility to deliver on our growth strategy, Kelly said.
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