Trading and wealth management infrastructure fintech, Openmarkets Group (OMG), has closed a significantly oversubscribed $10 million pre-IPO round, co-led by E&P Corporate Advisory and Investec Corporate Advisory.
The $10 million was secured just as Openmarkets, OMG’s B2B arm, overtook CMC Markets to become Australia’s second-largest online broker behind only CommSec, after surpassing Westpac’s Ausiex in January and nabtrade back in September.
The majority of growth capital was injected by a group of top tier institutional investors, with the remainder coming from high net worth investors.
Feedback from investors highlighted confidence and excitement at the huge growth multiplier that OMG’s platform strategy and API stack enables, as existing trading platforms such as SelfWealth and Superhero use Openmarkets to connect to Australian markets.
CEO Ivan Tchourilov says the funds will be used to accelerate growth through increased investment in marketing and technology, as OMG continues to extend its range of integrated technology solutions available to its B2B clients.
“Financial markets have experienced a massive injection of energy and capital flows in recent years, especially with the influx of online traders who want rapid access to markets via digital and more affordable channels,” said Mr. Tchourilov.
“This type of access is exactly what we provide for partners like SelfWealth, Superhero, Marketech, Stockspot, and Six Park, that all use our open APIs to connect to the markets via our wholesale platform.
“We are well-positioned to connect these partners to the growing B2C retail trading audience and also offer products and services directly to that audience ourselves.
“The reason low-cost trading is possible in Australia is due to OMG fundamentally changing the industry by lowering the cost base. We have achieved this through a combination of developing our own cutting-edge technology to automate more cumbersome parts of the system and integrating the trading and wealth management process end to end. We are about removing the friction.
“We are currently the best option for any global fintech wanting to connect to Australian markets like the ASX and Chi-X. The opportunity in front of us is significant.
“This was all reflected in the interest we received in this considerably oversubscribed pre-IPO round. We appreciate the support of the Australian capital markets so far. We are now focused on preparing the company for IPO and are excited about delivering strong returns for our investors,” concluded Mr Tchourilov.
OMG services over 180,000 accounts and clears more than $50 billion in annualised volume. From February 2020 to February 2021, monthly trading volume has increased by 228 per cent (Source: IRESS) and, in the year from March 2020, funds under administration have increased by 111 per cent.
OMG has over 150 B2B clients (AFSLs), including significant retail players like Selfwealth, Stockspot and Superhero, while its technology stack supports over 750 financial advisors.
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Openmarkets Group (OMG) (www.openmarkets.group) is a trading and wealth management infrastructure fintech that provides a full suite of technologies for investment professionals and connects retail investors with investments and advice.
OMG consists of two enterprises:
Openmarkets is Australia’s largest independent retail broker and provides B2B platform and technology solutions across wholesale execution, order and risk management, advice and CRM, enabling investment firms, professionals, and fintechs to connect to markets and deliver white-labelled services for their customers.
Opentrader is Australia’s most competitive self-directed retail trading platform for professional traders and those who want to trade like a pro; from only $5 per trade.