On August 22, blockchain-based TradeTech startup XREX raised $17mn in a Pre Series-A round led by CDIB Capital Group.
Backed by Taiwan National Development Fund (NDF), XREX is a startup aiming to drive financial inclusion by leveraging blockchain technology. It runs an exchange and also provides Escrow services to importers and exporters located in emerging economies.
What does XREX do?
The international merchants need access to USD. But, the high fees, slow payments, and the risk of being scammed are some of the bottlenecks they face. These issues are generally found in emerging economies like India, Africa, the Middle East, Southeast Asia, and South America. XREX tries to circumvent these issues, with a special focus on these regions.
It provides not only payment services but also aids merchants in Compliance and Risk Management.
For instance, in the last eight months, XREX successfully detected and prevented fraud rings from Russia and Nigeria from using the platform, making it one of the safest crypto-fiat currency platforms in the world.
The Funding Round in detail
The round saw participation from a consortium of global investors, publicly-listed companies, major banks, and venture capital firms including SBI Investment (a subsidiary of SBI Holdings), Global Founders Capital, ThreeD Capital, E.Sun Venture Capital, Systex Corporation, MetaPlanet Holdings, AppWorks, BlackMarble, New Economy Ventures, and Seraph Group.
This fundraising round was oversubscribed by 200%.
“This (round) was a monumental feat, given the funding round was accomplished during the height Covid pandemic when travels and face-to-face meetings were impossible. This shows the high level of confidence foreign investors have in XREX,”XREX representative
“XREX has shown above-expectation growth since their graduation from our AW17 Accelerator batch in 2018. We are thrilled to back them again. This round will accelerate XREX’s capability of combining their unmatched Cybersecurity expertise with leading compliance technologies to create a safer and cleaner ecosystem for Crypto-enabled Merchants, Digital Asset Owners, and Entrepreneurs.” said Joseph Chan, a Partner at AppWorks who serves on XREX’s board.
Digital Assets can help make foreign trade faster and cheaper as the assets move in real-time. They also help in clamping down on the Hawala system which can be used to fund illegal activities. On the other hand, Online Banking does move the assets, but they have to be backed with foreign reserves in fiat currency.
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