By Daniela Raffel and Evgenia Plotnikova
Sometimes a partnership is just meant to be.
In March this year we were already excited about FlowX.AI, a game-changing platform that allows financial institutions to build cutting-edge digital products on top of legacy tech stacks within weeks, rather than years.
Enticed by both the company’s software and the vision and drive of its CEO and co-founder, Ioan Iacob, that month we flew to Romania to get to know Ioan and his team better. They were inspiring, and by the time we headed back to Bucharest airport we had plans to invest.
Then, by total chance, we were allocated seats next to Ioan on the return flight to London! Spending hours talking together on the plane only sharpened our resolve to team up, and we disembarked thinking that a bit of stardust must have been in the air.
Now we are delighted to announce that Dawn has led FlowX.AI’s $35M Series A funding round — a raise that is testament to the company’s innovative product, incredible team, and impressive early success.
The opportunity: Enterprises operating on inefficient legacy infrastructure
In a world of rapidly developing generative AI, you might be asking: ‘What’s so exciting about a software development platform?’
To that we would say the reality is that financial institutions, and enterprises more widely, still have fundamental challenges they need to address before they can innovate quickly and safely, GenAI or not.
Many businesses are struggling to release brilliant new products because they are still running on old and inflexible infrastructure that restricts their ability to develop even relatively simple solutions, such as better customer onboarding journeys.
And it’s not just a question of restricted innovation, there is also a large cost factor creating an opportunity here. Maintaining legacy tech stacks is a multi-billion dollar problem, as banks are spending up to 90% of their IT budgets on keeping old systems running.
To make matters more complicated, companies are often stuck using these old, inefficient tech stacks because moving away from them is extremely complex and can lead to serious consequences. For example, one UK retail bank was recently fined £50m for failings that occurred as it migrated its core banking system from legacy to new software — which saw 1.9 million customers locked out of their accounts for five days as a result.
This is where FlowX.AI comes in.
The product: Transforming the speed of innovation for customers
FlowX.AI eases the pain of legacy tech stacks by abstracting their complexity, and giving its customers a modern platform on which they can build must-have products in weeks, rather than years.
In an increasingly competitive market, this is a game-changer for businesses looking to stay ahead of the innovation curve. Plus, the platform enables customers to offer truly omnichannel experiences from day one, and, unlike point-solutions, frees its users from inflexible products and proprietary technologies.
But FlowX.AI isn’t just fixing today’s problems. Unlike other solutions that can act as band aids to relieve short-term issues, this platform solves problems customers face today whilst also helping them migrate onto new tech stacks safely and efficiently. It resolves the problem at the source, and sets customers up for success going forward.
The Future: A dazzling start, and ambitious plans
For us, FlowX.AI is the obvious platform to resolve the challenges of legacy infrastructure both today and tomorrow. And it’s not just us seeing the potential. Within two years, FlowX.AI has already helped household-name partners including Banca Transilvania, the largest bank in South Eastern Europe, and financial services leader OTP to power customer-facing products and drive significant ROI. This is a feat for a platform with a team of 50 employees, and now is the time to push even further into the market.
These achievements are just the beginning too. Ioan and his co-founders, Serban and Radu, are already taking on the US market, and have ambitious plans to bring the FlowX.AI solution to customers worldwide. The team will now use this latest funding to power their global expansion and product development, including rolling out a number of developments that will bring AI innovation to enterprise on a large scale. This will empower their customers to deliver better customer experiences, drive additional revenue streams, and operate more efficiently unencumbered by existing technology.
We couldn’t be more excited to back Ioan, Serban, and Radu on their journey to build a software powerhouse by leading their $35m Series A. This experienced and inspiring team is further proof that tech innovation is on fire across Europe, and we are thrilled to be supporting them as FlowX.AI becomes a truly global player and forever changes how enterprise software is built.
If you would like to join FlowX.AI on their exciting journey ahead, check out their open positions here. Also, please do get in touch at daniela@dawncapital.com and evgenia@dawncapital.com if you’re a founder innovating in the automation and future of work space. We’d love to hear from you.
