The buzz words "digital transformation" and AI continue to dominate the enterprise software landscape, and Romanian startup FlowX.ai has successfully tapped into these concepts with its no-code/low-code platform that integrates legacy and new software. The company recently raised $35 million in a Series A funding round, which it will utilize for further product development and international expansion.
Dawn Capital led the financing round, with participation from PortfoLion, SeedBlink, and DayOne Capital, who previously backed the company in a $9 million seed round.
FlowX.ai is primarily focused on serving the financial sector, with clients such as BNP Paribas, OTP, Banca Transilvania, and Alpha Bank. The company often relies on third parties like systems integrators, including IBM and KPMG, to connect with potential users. Its goal is to help large legacy organizations rapidly launch new services for internal use or as external products to compete with emerging players such as neobanks. FlowX.ai claims that roughly 30 million users have interacted with products and services built using its platform since its inception four years ago.
While FlowX.ai did not disclose its valuation, PitchBook reveals that the startup's revenues for the year ending December 2022 were $1.55 million, a staggering 735% increase versus the previous year. FlowX.ai was founded by Ioan Iacob, Radu Cautis, and Serban Chiricescu, with Iacob serving as the current CEO.
Many companies, such as MuleSoft, Boomi, Sapho, Tray.io, Snaplogic, and AppMaster, have long recognized the potential of integration and sought to enable organizations to harness both legacy and new applications more easily. With high-profile acquisitions providing strong indicators of the industry's growth potential, FlowX.ai distinguishes itself by utilizing AI to automate much of the integration, application, and service creation tasks typically done manually by businesses, especially in the financial sector.
For years, banks and financial service organizations have been on long "digital transformation" journeys. They are challenged with implementing new software, whether for regulatory compliance, new product development, or remaining competitive with the growing number of startups disrupting the market. Consequently, many of these organizations must manage a mix of software tools, including outdated legacy systems. Seamless integration of old software and data with new applications and data, or simply modernizing old software, remains an ongoing challenge.
FlowX.ai's AI-driven solution addresses these pain points, enabling financial sector legacy players to accelerate application modernization and bridge the gap between old and new software tools in a matter of weeks rather than years. By leveraging the AI-based approach of FlowX.ai, these organizations can increasingly capitalize on digital transformation offering better services to customers and improve internal processes.
