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Metalshub closes Series A financing round

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Author: Editorial Office

Metalshub closes Series A financing round
The Metalshub founders: Dr. Sebastian Kreft (left) and Dr. Frank Jackel. Photo: Metalshub

06.05.2021. Metalshub, the metal industry’s first digital trading and price intelligence platform, has raised a 11 million US-$ Series A financing round led by international growth VC Acton Capital with participation from existing investors Point Nine, Chromo Invest and several business angels. Using the fresh capital and the strong momentum of a record year, Metalshub will expand beyond Europe and targets $ 1bn GMV by the end of 2021.

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Dr. Sebastian Kreft, Co-founder Metalshub:

“2020 exceeded our expectations. During the last twelve months, digital adoption has taken a quantum leap in the metal industry.” Also benefiting from trends like the rally on steel mill raw materials, the Metalshub platform has experienced soaring demand. “With the fresh capital we will be able to use this strong momentum to expand beyond Europe. We are expecting to reach the next big milestone of $ 1bn GMV by the end of 2021.”

Julius Lühr, Principal at Acton Capital:

“The trading of the industrial metals currently in focus of Metalshub is a $300 billion global market, but still largely conducted offline. Thus, the space is characterised by inefficient processes and a lack of transparency, leaving industry participants unable to monitor their supply chain. To tackle these issues, Metalshub has created the first digital procurement tool and consumer-grade marketplace for raw metals. We have been deeply impressed by the team’s unparalleled industry expertise and ability to onboard key industry players to the platform, putting Metalshub in a great position to become the global category leader.”

Digital ecosystem in the metals raw-materials trading space

With over 1,100 onboarded companies and more than $750 M traded volume over the platform since its launch in 2017, Metalshub has established the most liquid digital ecosystem in the metals raw-materials trading space. The investment follows a record year in which their turnover has increased fivefold and where Metalshub has published its first price indices. Large enterprise customers like Outokumpu, Saarstahl, Dillinger and Swiss Steel Group have moved their raw materials purchasing onto the Metalshub platform, highlighting the need for an industry specific purchasing and supply chain solution.

Metalshub published the first transaction-based price intelligence services in the industry, a giant leap towards supply chain transparency. “In the 21st century, price indices must be based on real transactions. We are proud that we are providing the first transactions-based price indices for many products like ferrochrome, ferrovanadium and ferrosilicon” says Dr. Sebastian Kreft, founder and managing director of Metalshub.

Invest into product leadership and customer acquisition

With the new funds Metalshub plans to further invest into its product leadership and customer acquisition. “With our focus on the vertical of physical metals and scrap trading, we have managed to address the specific needs of our industry and provide our customers with an excellent user experience. Now an increasing number of customers work with us on reaching their sustainability goals, increasing supply chain and market transparency and integrating innovative trade finance solutions to fully digitise their trading process” says Dr. Frank Jackel, founder and managing director of Metalshub. Building on existing global trading activity, Metalshub will also use the funds to drive its global footprint.

The metals industry is the backbone of many industrial supply chains. The global market for the industrial metals currently traded over Metalshub exceeds $300 billion, but its commercial processes are still dominated by email and spreadsheets. The current Covid pandemic has highlighted the desperate need for digital, compliant, and cost-efficient processes in metals trading.

The steel industry is one of the key contributors of global CO2 emissions, accounting for roughly 10 % of the global emissions. To limit global warming to below 1.5 °C as proclaimed by the widely adopted Paris Agreement, the steel industry needs to decarbonise fast. This can only be achieved by transparent supply chains, where CO2 is accounted for across value steps. Metalshub will play a focal role in meeting this challenge.

 

(Source: Metalshub)