Cross-border digital payment startup, InstaRem on Tuesday said that it has raised $13mn in series C round funding as the company wants to expand its business to all markets in Europe and the U.S. before the end of the year.
The funding round was led by Chinese venture capital firm GSR Ventures with participation from SBI-FMO Ventures, Vertex Ventures, Fullerton Financial Holdings and Global Founders Capital. Instarem previously closed a $5 million Series A in March 2016 and has grown eight times in volume since funding. In total, it has now raised over $ 18 million.
The FinTech company will use current investments to build its global payment infrastructure and boost the employee strength in Mumbai office, where most of the company’s teams are based.
Commenting on the funding, Prajit Nanu CEO and co-founder of InstaRem said, “The fund raise is significant on multiple counts. GSR has a strong network in China and the US whereas SBI-FMO has a strong base in Japan and emerging markets. Jefferson Chen from GSR Ventures now joins the InstaReM board.”
Further, Suramya Gupta, Fund Manager at SBI-FMO Fund, said, “We are excited to partner with the InstaReM team to jointly build the leading regional cross-border digital payments platform. We look forward to plugging InstaReM into our global ecosystem of fintech and financial service companies.”
Prajit Nanu along with Michael Bermingham co-founded Instarem in 2014. It operates a cross-border payment service that is targeted at business users, including banks and retailers, although it does operate a consumer service. By working with banks and using wholesale rates, the firm is able to get good cross-border rates for its retail customers, too.
The company initially started with Australia, and since expanded to Hong Kong, Canada and Singapore and into 50 countries worldwide. Right now, it is processing 150,000 transfers each month, with an average size of $1,800 per transaction.
Nanu believes that InstaRem is 12 months away from reaching profitability and most probably he can go for an IPO by 2020.