In Brief:
- XREX, the blockchain start-up, has raised $17 million in funding to speed up cross-border trading.
- This could rise in institutional demand for crypto-focused firms.
On 22nd August, CDIB Capital Group (CCG) and many big-name investors led a $17 million funding round for XREX Inc., a Taiwanese blockchain TradeTech company. According to a press release on Monday, the pre-Series A round was 200% oversubscribed.
When asked why XREX chose to conduct a pre-Series A Funding Round, Wayne Huang, the company’s co-founder and CEO stated that “they didn’t feel they had raised enough revenue.”
“We were originally aiming for $5 million to $8 million, which would give us enough of a buffer to cushion any COVID-related uncertainties as well as enough revenue to pursue a Series A,” Huang explained. “However, as traction grew and investors became more enthusiastic, we became overcrowded and decided to increase the round size,” he added.
Ryan Kuo, head of CDIB Capital Innovation Fund, said, “CDIB was an early investment in XREX.” “We were determined to double our investment and lead this strategic round after witnessing the company’s rapid revenue development and commitment to compliance,” he added.
In the interim between 2 companies, a pre-Series A investment round helps companies to test investor interest. To increase the company’s fiat currency portfolio, acquire new licenses, strengthen relationships with financial institutions, etc. the funds will be spent wisely.
SBI Holdings subsidiary SBI Investment, Metaplanet Holdings, AppWorks, Black Marble, and Seraph Group, etc. were among the other investors.
“We were an early investor in XREX and we’re excited to continue our support in this round,” said Jerry Horng, President of Black Marble Capital Management. He even served on the board of directors. “XREX is in a unique position to connect Taiwan’s mature banking industry with emerging economies’ expanding cross-border commerce,” he added.
The company developed software like BitCheck and MyXchange that helped merchants and SMEs. It aided in the emergence of economies, reducing foreign exchange loss and obtaining access to US money.
“Some investors see emerging nations as the future global development centres, and they are eager to work with companies that are familiar with the local financial markets,” Huang explained. He also added: “Although they have portfolios that leverage blockchain to facilitate intern-bank, cross-border settlement, there’s been very few fintech companies that provide solutions for emerging market SMEs.”
Also Read: Mobilecoin Raises $66 Million in The Series B Funding Round
CCG was Taiwan’s first private growing financial institution. It was with a portfolio of over 250 enterprises worth $2.3 billion.
In 2019, XREX raised $7 million in a seed round headed by AppWorks. It happened with participation from Toivo Annus, the late Skype co-founder, Metaplanet Holdings, Black Marble, CCG, and others.
