Israeli financial technology firm Capitolis has secured $220 million in a new blend of equity and debt, pushing the company's valuation to $1.9 billion. The capital injection consists of a $120 million Series E stock sale alongside a $100 million lending facility, marking an increase from the $1.6 billion valuation it attained in 2022.
Existing backer Citi spearheaded the Series E equity financing. New participants joining the round include Bank of America, Nomura, and Tradeweb Markets. These institutions invest alongside earlier shareholders such as Barclays, BNP Paribas, J.P. Morgan, State Street, and UBS. Meanwhile, the $100 million credit component was supplied by First Citizens Innovation Banking, Hercules Capital, and Pinegrove Venture Partners.
Capitolis plans to channel the freshly raised funds into its takeover of eSecLending, a transaction disclosed the preceding week. Absorbing eSecLending brings securities lending tools directly onto the Capitolis platform, connecting the company to broader institutional clientele and opening up fresh revenue streams for the enlarged business.
Chief Executive Officer Gil Mandelzis explained that combining share sales with debt financing enabled Capitolis to align with critical strategic partners while securing relatively cheap capital for continued growth. Started in 2017, Capitolis builds marketplace software designed to help major financial institutions and banks curb market risks and manage balance-sheet capital more efficiently.