Zest announces the total exit from fintech start-up Cardo AI, which specialises in the development of advanced technologies for structured finance.
The stake in the start-up was sold as part of the $15m Series A round closed by Blackstone-led Cardo AI and Fintop Capital. This new exit from the start-up generated proceeds of more than EUR 600,000. The total exit follows an initial partial sale of shares in Cardo AI that took place in February 2022: the deal, as a whole, generated proceeds of approximately EUR 1.9m, with an IRR of 106% and a return on initial investment of more than 17 times.
The startup was accelerated in 2018 by the dedicated fintech and insurtech accelerator programme Magic Wand, supporting the startup team from early stage development to go-to-market. In recent years, Cardo AI has rapidly consolidated its presence in Europe and the UK, facilitating the efficient management of investment portfolios worth over €40 billion by integrating and standardising data from over 42 countries and 150 different systems.
Cardo AI was created to simplify the management of investment portfolios in the private debt market. The start-up develops advanced solutions based on artificial intelligence algorithms, offering innovative tools for portfolio management and risk assessment. Its proprietary platform provides real-time analysis and automated solutions to improve decision-making and operational efficiency.
The resources raised will support growth in the US market, where Cardo AI has already established significant partnerships integrating some of the country’s most sophisticated investors. In addition to leading the funding round, Blackstone has begun using Cardo AI’s technology to optimise the management of its asset-based finance and direct lending operations.
“Today marks the end of a journey that has seen us support the growth of Cardo AI from the early stages, right up to their market success, with Blackstone’s entry into the startup’s capital. This operation demonstrates how Italian start-ups developing artificial intelligence technologies in frontier areas, such as fintech, can compete and be attractive internationally. Like Zest, we will continue to invest in the best technology companies operating in strategic verticals, accelerating their development thanks to our network of investment and industry partnerships. We are proud of the success of Cardo AI and of having supported the founders not only as investors, but as a strategic partner in their journey, which today opens a new, exciting chapter,’ Gabriele Ronchini, CEO of Zest Investments, said in a note.
“We are proud to have had Zest by our side over the years. Their commitment to supporting innovative companies like ours has been crucial for the development of Cardo AI, especially in a context like Italy, where raising capital for start-ups can be particularly challenging. The expansion into the US market, supported by Blackstone, is a testament to our ability to bring cutting-edge, high-impact technology solutions to the structured finance industry. Together with our investors, we are excited to usher in a new chapter in the Cardo AI story,” says Altin Kadareja, co-founder and CEO of Cardo AI. (photo di Pawel Czerwinski su Unsplash)
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