BrazilConsulting matchmaker raises €8 million to accelerate expansion drive
One of Germany’s fastest growing startups, Comatch, a platform which matches consultants with client projects, has secured €8 million in a Series B funding round. With the capital injection, which comes on top of the €4 million in a Series A funding raised two years ago, the digital consulting matchmaker has set its sights on accelerating its market penetration and international expansion.
Digital services and apps are cutting out middlemen and carving out pieces of traditional industry pies across a diverse range of sectors. Startups can simply look at some service and say, ‘how do we app-ify this? How do we make it easier through digital means?’ With ride-sharing and FinTech ‘disrupting’ the traditional taxi and banking industries, why wouldn't the management consulting industry also be prone to disruption?
Founded in Germany in 2014 by two former McKinsey & Company consultants, Comatch sets up clients with independent management consultants – not unlike how FinTech loan startups match businesses seeking a loan with investors through a website or mobile app. Cutting out the consulting firm ‘middleman’ means that clients pay up to 50% to 70% less than the rates of top-tier consultancies, according to one estimate, while the freelancers connected through the app receive a higher pay-rate than they would at a big consulting firm – a win for both parties. Meanwhile, Comatch takes a healthy 15% cut for setting up the match.
Comatch uses an algorithm to match suitable consultants with available projects, further filtering selected candidates by user-reviews and feedback to recommend the most suitable options for clients. The process results in two to three tailor-made options in just 48 hours, promises the digital matchmaker on its website.
As it stands, the German firm has over 4,800 registered management consultants, and has on the back of spiking demand expanded its services to the Nordics, France, the Netherlands, the UAE, and more recently, the UK. Since the service’s launch, Comatch has staffed 1,000 projects for over 300 international clients. The firm was recently named one of the 50 fastest growing digital startups by German magazine Gründerszene, boasting a compound annual growth rate of 422% between 2014-2016.
As such, the consulting startup has had little trouble attracting money from digital services-hungry venture capitalists. In 2016, the company attracted €4 million from venture capital (VC) firms Acton Capital Partners, Atlantic Labs, and btov. In a second round of fundraising (Series B) announced last month, Comatch has raised €8 million from the same venture capitalists.
The capital will be used to solidify Comatch’s market-leading position in the DACH countries, while pushing for a leading role at the European level. The new funds will also be invested into tech improvements, allowing the core matching model to be faster and more precise than it currently is. The firm will further seek to create a stronger support network for consultants looking to return to a permanent position.
“In the past three years Comatch has become the leading marketplace for independent management consultants in Germany,” remarked Sebastian Wossagk, Managing Partner at Acton. “The company’s strong revenue growth is especially driven by a large number of returning clients whose high level of satisfaction is not only a clear indication of the exceptional quality of Comatch Services, but also the perfect foundation for further international expansion. I am happy that Acton, together with Atlantic Labs and btov are able to continue supporting the success of the Comatch team.”
Commenting on the successful financing round, Comatch co-founder Christoph Hardt said; “Together with the investors, the entire Comatch team has achieved a great deal over the past few years. In this respect, the significant increase in investment not only expresses exceptional appreciation of our work – it is also essential in order to continue Comatch’s growth and firmly establish the company throughout Europe as a partner for clients and consultants.”
