- XTransfer has raised cash through a C+ Series round, which tends to be one of the final parts of the capital raising process – though the exact amount of money raised was not revealed by the company.
- The company, which provides its services to importers and exports and offers services such as local bank accounts and multiple currency clearing networks, said that it had worked with the firm Lavender Hill Capital Partners to raise the money.
- A senior figure at the firm highlighted the fact that the company has support from a range of other major investors, including the well-known Chinese company Alibaba.
The Chinese cross-border payments start-up XTransfer has concluded a major funding round, the firm has confirmed to the press.
The company said in an interview with a local financial services publication that it finished a ‘C+ Series’ round in January.
The C+ Series round is one of the later parts of the fundraising process.
The firm said that it had secured its funding round with assistance from the firm Lavender Hill Capital Partners.
However, press reports suggested that the firm has not revealed the size and value of the investment.
Its wider investment background is strong, and includes a range of well-known funders.
eWTP Capital is one of them – this firm is linked to Alibaba and its affiliate Ant Group.
XTransfer targets its services at importers and exporters.
It offers such firms services including on-the-ground local accounts and speedy money transfers.
Sellers of goods can use XTransfer through a series of payment collection services at major names such as Citibank and the Community Federal Savings Bank.
This gives merchants the chance to operate in a wide range of markets across the globe.
They can also then use a clearing network that has compatibility with several different currencies.
The company’s business model is based around charging fees on transfers.
Its standard fee is 0.4% per transfer.
This is lower than the normal rates charged by banks, which, it said, are between 2% and 3%.
In a statement, XTransfer’s co-founder and chief executive officer Bill Deng shed more light on the context of the company’s latest funding round.
Deng, who has previous financial services experience working for companies such as Visa, said that merchants currently faced a range of barriers, including fragmentation.
“The transactions between businesses has become increasingly fragmented in terms of transaction parties, as more SMEs emerge to play an important role amid the e-commerce boom,” he said in an interview with KrASIA.
He also went on to praise the other organisations that have backed XTransfer over the years.
“Our background from Alibaba indeed offers a good start, and the credibility of our system, personnel, investors, and a healthy financial performance can cope well with the continuous supervision from banks,” he said.
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