The Munich-based fintech company CRX Markets aims to become the world's leading bank-independent provider of working capital financing. To this end, CRX Markets has created a marketplace where companies can finance liabilities and receivables through lenders—independently of a bank. An interview with CEO Frank H. Lutz.
Munich Startup: Who are you and what do you do?
Frank H. Lutz: CRX Markets was founded in Munich in 2012. In 2015, our digital marketplace for working capital financing Our marketplace is a platform for companies, banks, and institutional investors. It offers companies the opportunity to finance liabilities and receivables through lenders. Why? To optimize their own working capital, essentially freeing it up so that it can be used for other purposes within the company.
The idea for CRX Markets came from the founders Moritz von der Linden and Carlo Kölzer. After successfully establishing a digital marketplace for the Foreign exchange trading They founded CRX Markets. Because even in the area of working capital financing, there was a lack of an independent platform where companies could operate freely and without being tied to a bank or investor.
Since 2018, I have led CRX Markets as CEO, together with my two board colleagues Alexei Zabudkin (CFO) and Thomas Brusa (CIO), and a fantastic team. Together, we are driving the digital marketplace forward.
How companies reduce risk and dependency
Munich Startup: That's been around for a long time!
Frank H. Lutz: Working capital financing has, of course, been around for a long time. In addition to banks, there are several companies and startups that deal with working capital financing. What sets us apart from the crowd is the idea of a digital marketplace where companies finance receivables and liabilities through third parties, namely many different banks and institutional investors.
Munich Startup: What problem does your startup solve?
Frank H. Lutz: The working capital financing market is still heavily controlled by banks. These bind companies to their own financing programs. Companies seeking more flexible working capital financing often cooperate with multiple banks.
This allows companies to reduce risk and dependency, but at the same time increases control effort and increases transparency. Not to mention the effort required for the technical integration of different solutions and the separate accounting and contractual processing.
CRX Markets solves precisely this problem. Companies that choose us are connected to the digital marketplace once via an add-on and then have access to a variety of lenders. By processing all transactions on one platform, the client has complete transparency and control over all working capital financing. They can Expand liquidity pool and at the same time, better compare and manage. Seamless integration into the customer's ERP systems fully automates the processes. Furthermore, using a single platform significantly reduces legal documentation.
How does an unknown fintech convince global players?
Munich Startup: What have been your biggest challenges so far?
Frank H. Lutz: The biggest challenge was to convince the first customers of a solution that had not yet been tested. When financing working capital on an as yet unknown FintechChoosing a company requires a lot of persuasion, especially since using our marketplace requires connecting a company's core systems. We had to earn the trust required for this with each individual customer.
Thanks to initial successes and the onboarding of well-known clients, customer acquisition has become easier. We are proud of our customers, including Nestlé, Vattenfall, and Daimler.
Munich Startup: How are things going?
Frank H. Lutz: In 2019, we financed over €2.5 billion through our digital marketplace. As of today, we work with suppliers from over 45 countries on five continents, who are provided with liquidity daily in various currencies via our platform from over 30 banks and institutional investors. And the trend is growing.
Especially in times of crisis, our platform is proving more important than ever. Companies that already use our digital marketplace are executing more financing and recognizing the benefits of having access to a variety of lenders, banks, and institutional investors.
A platform also for times of crisis
Munich Startup: Why did you want to fly under the radar until now?
Frank H. Lutz: We don't really fly under the radar. We're well known in the industry. And more and more companies are interested in our marketplace. This is certainly also because successful global companies are already cooperating with us. And because the facts speak for themselves.
Munich Startup: Where would you like to be in one year, where in five years?
Frank H. Lutz: Our vision is to become the world's leading bank-independent marketplace for working capital financing. To achieve this goal, we have set ourselves milestones:
- First, we want to consolidate our leading market position for working capital financing in the DACH region by further increasing the absolute number of customers and the financing volume processed via the marketplace.
- In a second step, we plan to expand into new markets. Our focus here is on the Scandinavian countries, the Benelux countries, and Great Britain.
- Finally, global expansion is the strategic goal.
“We are not aiming for the ‘unicorn’ label”
Munich Startup: How can your startup become the next unicorn? Or will we see you soon at Epic Fail Night?
Frank H. Lutz: Honestly? We're not aiming for the "unicorn" label. With our digital marketplace for working capital financing, we want to make a significant contribution to the economy. Even, or especially, in times of crisis.
We are optimistic that this will also translate into an increasing valuation for CRX Markets. However, for now, we are focused on attracting even more customers and investors to our marketplace.
Munich Startup: How do you rate Munich as a startup location?
Frank H. Lutz: Munich is the ideal location for startups. Not only are many global players based in the Bavarian metropolis, it also attracts many well-trained specialists who are important for companies' expansion. Startups benefit from Munich's internationally recognized universities for academic collaboration. And of course, the quality of life in Munich, with its many green spaces, lakes, and mountains, is simply fantastic.
CRX Markets: Shareholder structure made up of “Friends & Family”
Munich Startup: Quick exit or long breath?
Frank H. Lutz: With a shareholder structure of "friends and family" who have been loyal to us for over seven years and have already supported twelve capital rounds, this question is easy to answer: We need and have the staying power to make CRX Markets the world's leading bank-independent provider of working capital financing.
