German index technology provider BITA has secured a €6m investment from ETFS Capital, in a deal that took less than one month to complete.
The funding will enable BITA to accelerate its technology rollout and add new functionalities to its all-in-one indexing platform, BITACORE.
It will also expand business activity further across Europe and North America, in particular, where the majority of the firm’s clients are based, along with hiring more staff in areas such as infrastructure development and software.
Officially launched in 2020, BITA offers asset managers and institutional investors indexing solutions across index design, back testing, customisation, administration, governance and calculation.
Victor Gomez (pictured), co-founder and CEO of BITA, told ETF Stream: “Up until now, we have been working extremely hard with limited resources but this deal means BITA has the ability to accelerate.
“The team at ETFS Capital are some of the pioneers of the ETF industry. They understand the indexing market and what we are trying to achieve.
“From indexing platforms and solutions, to portfolio customisation APIs, our infrastructure will enable us, as well as our clients, to build innovative products which are better suited to the opportunities and challenges ahead.”
Martyn James, managing director at ETFS Capital, added: “This was our quickest investment. We are incredibly bullish on the indexing space and BITA is providing a solution that we have not seen elsewhere in the market.
“Index expertise alone is not enough. What is needed for ‘scaled disruption’ is the provision of a comprehensive indexing technology solution, which has not been available to date.”
The move comes just two months after ETFS Capital sold indexing specialist Moorgate Benchmarks to Morningstar for an undisclosed fee.
ETFS Capital provided seed funding to Moorgate Benchmarks in 2019 and acted as the firm’s sole external investor.