Interdealer broker ARRACO raises £3.75m to expand product offering and global footprint

The £3.75m in funds provided by YFM will be used to expand ARRACO’s established UK footprint, hire additional people, invest in its team and broaden its product offering. In addition, ARRACO will open two new international offices in Singapore and Houston

London-Square-Mile

Global commodities interdealer broker ARRACO Global Markets has closed its latest round of funding to drive the next stage of the company’s growth. The capital was raised from a new investor, UK-based YFM Equity Partners, who will be taking a minority stake.

Founded in 2015, ARRACO has grown quickly and taken market share in an industry that rarely sees new entrants or disruptors.

ARRACO’s approach has resulted in rapid expansion; it has grown to a £4m revenue business, doubling revenue each year. The business currently has a team of 70 staff that speak 14 languages and desks covering Power, Gas, LNG, LPG and Renewables servicing clients including oil majors, global trade houses, energy utilities, shippers, banks and funds.

The £3.75m in funds provided by YFM will be used to expand ARRACO’s established UK footprint, hire additional people, invest in its team and broaden its product offering. In addition, ARRACO will open two new international offices in Singapore and Houston, which together with offices in London and Tokyo, will give the combined group 24-hour market coverage.

ARRACO Co-Founder and CEO, Tom Roberts, said: “We are delighted to announce this investment which will allow us to remain independent, continue our rapid growth trajectory and significantly extend our range of product desks. I’m particularly excited about establishing two new international offices in Singapore and Houston, from which we will be able to provide global coverage for our clients and improve liquidity in Asia and the US.

“ARRACO is very much a people business and relationships are very important to us – as soon as we met the team at YFM, we really liked them and knew they were the right fit for us. We share a similar culture, with ESG at the core of both businesses, and we like the fact they have national coverage and understand regional businesses. We were looking for supportive investors to work alongside us as we grow the business and YFM have a great track record in the market.

“We’ve generated significant growth over recent years and have had great success with our unique and highly personalised approach to the market. It’s an exciting time for ARRACO and I look forward to building on this, as we look to expand the products and service we provide for our clients.”

David Wrench, Investment Director at YFM, commented: “There’s no doubt that ARRACO is a business with huge potential – it has doubled revenue every year and benefits from being led by a dynamic team with real vision to drive forward and differentiate themselves in what has been a fairly stagnant market. We felt immediately drawn to their innovative business model with a young, ambitious team of multi-lingual brokers focused on building strong client relationships.

“As we had tangential experience supporting a global aviation broking provider expand internationally, we felt that we understood ARRACO’s growth journey and could add real value” concluded Mr Wrench.

Read this next

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

<