XanPool, a cross-border payments infrastructure provider, is accelerating expansion plans in Europe, the Middle East, North Africa and Latin America after raising $41 million this year from investors led by Target Global, based to London.
The Hong Kong-based startup bucked global startup funding in the winter when it raised $35 million from new investor Target Global and $6 million from existing investor Antler Elevate in the second quarter, valuing the company in 400 million dollars. Global investments by venture capital firms fell 34% to $74.5 billion in the third quarter from the previous three months, the lowest level in nine quarters, data from research firm CB Insights showed.
“We are preparing for a long winter,” Jeffery Liu, 28, XanPool’s founder and CEO, said in a recent interview in Singapore. Liu is among this year’s Forbes 30 Under 30 Asia honorees in the Finance and Risk Capital category that use technology to disrupt the conservative world of finance.
The funding will help Xanpool pursue opportunities in new growth markets outside of Asia, its largest market. It will also fund plans to establish a research and development center in Thailand, where Liu intends to move the company’s team of remote software engineers and product developers in the coming years. “We are moving the majority of our remote staff under one roof in Thailand.”
Since its founding in 2019, XanPool (which supports crypto and fiat currencies) has grown rapidly during the pandemic amid a boom in cross-border trade in Asia as merchants who have traditionally relied on financial intermediaries such as Visa and Mastercard to process payments international switch to the Xanpool platform. The company currently has a user base of over 2 million.
“We’re always looking for new ideas and disruptors of traditional payment systems and XanPool was a great fit,” Mike Lobanov, founder and partner at Target Global, says via text message from Cyprus.
Despite macroeconomic headwinds from rising inflation and tightening interest rates worldwide, Liu says the company’s revenue is likely to more than triple to $65.8 million this year year over the previous year, and will rise further to $163 million in 2023. “We are scaling responsibly and growing sustainably,” he said.