ManyPets, a leader in pet insurance, turned to Bound to:

• Reduce time spent on FX management.

• Gain confidence in purchasing USD and SEK through automated  risk mitigation strategies.

• Ensure fair, transparent rates with no hidden fees.

Who is ManyPets?

A UK insurtech specialising in pet insurance, ManyPets achieved a significant milestone by securing a Series D funding round. This supported their ambitious international expansion, making a strategic approach to FX risk management essential as they handled new revenue and expense streams.

Meet the Head of Treasury: Derek Livingstone. Derek has been with ManyPets for 11 years, experiencing the company's high growth. He started as Head of Finance and later established the treasury function, leading ManyPets' financial operations and heading the treasury team.

Currency challenges

As ManyPets expanded into new international markets, they soon ran into currency headaches. Having raised funds in GBP, they needed to convert these monies into USD, for example, to support their growing operations.

Initially, ManyPets managed FX manually and on an ad hoc basis, relying on spot market purchases through their bank. This approach was time-consuming, inconsistent, and vulnerable to daily currency fluctuations. Derek reflects on the limitations of their previous strategy:

“Previously, buying the currency we needed was rather ad hoc. It essentially involved going into the spot market and purchasing a million dollars here and there, trying to determine if it was a good day to buy. It was a game of chance.”

Then, one day, GBP significantly depreciated, resulting in a substantial financial loss. This prompted the ManyPets team to seek a better solution. But the finance team was being inundated with calls from brokers, making the FX landscape feel “like the Wild West,” filled with opaque pricing structures and complex industry jargon.

Enter Bound

Derek sought a solution that could automate FX management and mitigate risk while being user-friendly, requiring minimal prior knowledge, and being suitable for a new treasury team. He discovered Bound through industry peers, and the platform delivered immediate improvements:

• Automated currency purchases: Bound enabled the team to automate regular FX purchases, removing the stress of market timing. By using Bound’s automated ‘averaging’ strategy, ManyPets were able to distribute currency purchases over time, capturing an average rate and reducing volatility.

• Transparent pricing: Bound stood out from traditional brokers by offering clear and upfront pricing, making costs easy to understand. “It was transparent in terms of what the FX rate was, and what we were paying Bound. You can’t say fairer than that.”

• Time savings: Automation significantly cut down on the manual work Derek was previously undertaking and minimised the need for ongoing communication with banks and brokers. “It definitely saved time. And setting the hedging strategy  up online took five minutes rather than hanging on the phone.”

Summing up the drivers behind his decision to use Bound, Derek explains that the intuitive platform is easy to navigate, even for those less familiar with FX markets. The automation also allowed him and his team to adjust purchase amounts or make changes seamlessly. “For me, as someone who finds the FX space complex and full of jargon, it was important to go with a solution recommended by peers and validated through networking.”

Conclusion

With Bound, ManyPets found a tailored solution that streamlined FX risk management, reduced the pitfalls associated with market timing, and positioned them for sustainable growth. This partnership allowed them to focus on their core business while confidently managing international finances.

Ready to leave the FX guesswork behind? Book a call with one of our experts here.

No opinion given in the material constitutes a recommendation by Bound Rates Limited that any particular transaction or investment strategy is suitable for any specific company or person. Results may and will vary. The information in this publication does not constitute legal, tax or other professional advice from Bound Rates Limited or its affiliates.