Leading Metals Trading and Price Intelligence Platform Metalshub closes Series A
Düsseldorf, 05. May 2021 – Metalshub, the metal industry’s first digital trading and price intelligence platform, has raised a 11 million USD 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.
Dr. Sebastian Kreft, Co-founder Metalshub: “2020 exceeded our expectations. During the last 12 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 characterized 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.”
With over 1100 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.
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 degrees 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.
Metalshub is one of the pioneers of digital transformation in the metals industry. The software start-up was founded in 2016 in Düsseldorf by Dr. Sebastian Kreft and Dr. Frank Jackel with the mission to connect companies in the industry with a digital platform. Digital supply chains can help reduce costs and CO2 emissions. More than 1,100 companies are already using Metalshub, including more than 200 foundries and steel mills that have digitised their purchasing processes with Metalshub. Since the launch of the platform in 2017, more than 750 Million USD in trading volume was concluded through Metalshub.
About Acton Capital
Acton Capital is a leading growth venture capital investor headquartered in Munich. Since 1999, the Acton team supports startups in the fields of SaaS, FinTech, Consumer Health, Mobility, Logistics or Future of Work on their way to market leadership. Acton Capital invests worldwide with a strong focus on Europe and North America. With two decades of investment experience and a deep understanding of tech-enabled business models, the team has invested over EUR 600 million across five fund generations in more than 80 companies, including global category leaders AlphaSights, Clio, Etsy, HomeToGo, iwoca or Mambu. www.actoncapital.com
About Chromo Invest
Chromo Invest is an investment studio founded in 2013, geared to global assets, focused on alternative, innovative potential and exponential growth. Conceived originally from a Single Family Office in South Brazil, Chromo acts in the Private Credit, Global Real Estate, Private Equity/Pipe, Venture Capital and Real Assets segments, seeking global investment thesis with long-term perspective, and a participative approach in those businesses.
About Point Nine
Point Nine is an early-stage venture capital firm focused on seed investments in B2B SaaS and B2B marketplace startup. Since its founding in 2011, Point Nine has invested in SaaS startups such as Algolia, Automile, Contentful, DeliveryHero, Loom, and Typeform. They've recently been focused on backing B2B marketplaces such as Metalshub, cargo.one, Rekki and Laserhub, amongst others.