Payment processing solutions developer Credorax Inc. has raised $40 million from FTV Capital, to give it a 20% stake in the company. Sources inform ''Globes'' that that the financing round was held at a company value of almost $200 million.
Credorax's main investors until now were Blumberg Capital, Japan's Mobile Internet Capital, which invested in Credorax in early 2013 when it was seeking to enter the Japanese market, and private investors.
Credorax CEO Benjamin Nachman founded the company in 2008. He was joined by Igal Rotem, who previously co-founded PowerDsine, which was acquired by MicroSemi Corporation (Nasdaq: MSCC) in 2007, and who serves as chairman. Credorax operates in one of the world's more problematic fields in e-commerce in terms of performance and regulations - payment clearing technology. The company essentially functions as a virtual bank, offering solutions for e-commerce and m-commerce. It competes against some of the world's biggest banks.
Credorax is the first known success in the Israeli financial technology (fintech) sector which targets the end-user rather than businesses. FTV Capital, which has invested in a small number of Israeli companies to date, has had one big success in the Israeli fintech sector to date: anti-fraud solutions developer Actimize, which was acquired by NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) in 2008.
Credorax has 160 employees. Headquartered outside Boston, it carries out most of its operations in Israel, and has offices in London, Tokyo, and Malta.
Published by Globes [online], Israel business news - www.globes-online.com - on August 28, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013