Metalshub digitising the metals trading in Europe and beyond
Metalshub, the metal industry’s first digital trading and price intelligence platform, has raised a USD 11 million Series A financing round led by international growth VC Acton Capital with participation from existing investors Point Nine, Chrome Invest and several business angels. Using the fresh capital and the strong momentum of a record year, Metalshub will expand beyond Europe and targets USD 1 bn 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 USD 1 bn GMV by the end of 2021.
Dr Sebastian Kreft, Co-founder and Managing Director of Metalshub
Julius Lühr, Principal at Acton Capital: “The trading of the industrial metals currently in focus of Metalshub is a USD 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.
Julius Lühr, Principal at Acton Capital
With over 1100 onboarded companies and more than USD 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.
With over 1100 onboarded companies and more than USD 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.
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.
Dr Sebastian Kreft, Co-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.
Dr Sebastian Kreft, Co-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 USD 300 billion, but its commercial processes are still dominated by email and spreadsheets. The current COVID-19 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 to 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 has been in contact with EIT RawMaterials since 2018 with the first Booster programme and has since become an active member of the EIT RawMaterials Community. Last year, Metalshub received support from the Booster Call in response to the COVID-19 crisis to continue growth in times of uncertainty. EIT RawMaterials is happy to support Metalshub tram on their journey to revolutionise the future of metals trading.
