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Fintech startup XTransfer raises Series C2; E15 VC closes $32m Fund II

Chinese cross-border fintech firm XTransfer has raised a Series C2 round of financing, while Hong Kong-based E15 VC closed its second fund at $32 million.

Fintech startup XTransfer raises Series C2 round

XTransfer, a Chinese fintech startup that offers cross-border financial services and risk management solutions, has closed a Series C2 round of financing led by Hong Kong-based investment firm Lavender Hill Capital Partners (LHCP).

Existing shareholders also participated in the deal, said the startup in a statement. Financial terms of the new round were not disclosed.

Shanghai-based XTransfer partners with multinational banks and financial institutions to develop a global network that provides Chinese micro, small and medium-sized exporters with AI-enabled simplified and lower-cost trade transactions. The startup currently serves over 100,000 exporters in China with solutions covering multi-currency cash management, cross-border financial risk management, foreign trade collection, and beyond.

The new financing came as the prolonged COVID-19 pandemic fueled the exponential growth of the online economy, including cross-border e-commerce businesses, propelling demand for the likes of XTransfer’s fintech products.

“The pandemic has accelerated a growing trend of exporters and importers using online channels to proceed cross-border transactions. The model of business-to-business (B2B) e-commerce is still at its nascent stage, and a mega-sized e-commerce platform that integrates various [goods] information, logistics, and capital flows is yet to come,” said Bill Deng Guobiao, founder and CEO of XTransfer, in the statement.

Founded in May 2017, XTransfer has set up branches in Chinese major foreign trade cities like Hong Kong and Shenzhen, as well as overseas markets including Britain, the UK, Canada, Japan, Australia, and Singapore.

The firm will use the fresh capital to fund the continued iteration of anti-money laundering solutions and the construction of its AI, big data-enabled risk management system. It plans to further enhance its products’ efficiency and accuracy in collecting and verifying transaction information.

Three months earlier, XTransfer announced the completion of a Series C1 round led by Australia’s venture capital (VC) firm Telstra Ventures, as its first attempt to rope in investors outside of mainland China to pave way for a potential inroad into the global market.

The firm’s earlier investors also include Hong Kong-based investment firm MindWorks Capital; Alibaba and Ant Group-backed eWTP Capital; China-based 01VC; China Merchants Venture, an investment arm of state-owned China Merchants Group; and Yunqi Partners, which mainly backs businesses targeting corporate clients, among others.

HK venture firm E15 closes Fund II at $32m

E15 VC, a Hong Kong-based venture capital (VC) firm also known as E15 Ventures, has reached the final closing of its second fund at $32 million with a capital commitment of $15 million from financial services company Sun Hung Kai & Co (SHK & Co).

Hong Kong-listed SHK & Co made the commitment after seeing “a strong track record” from its debut fund, which had invested in entrepreneurs in the deep tech and healthcare industries, said the limited partner (LP) in a statement on Monday.

Founded in June 2017, E15 VC recorded two exits in the past two years, from portfolio companies including US-based surgical robotics developer Auris Health when the firm was acquired by Johnson & Johnson for $3.4 billion in 2019. It had also exited from an investment in California-based smart lighting startup Noon Home, after energy management solutions provider Racepoint Energy purchased it in 2020, without disclosing the financial terms.

E15 VC is led by managing partner Philip Liang, an engineer, designer, and serial entrepreneur-turned investor. As a stage and geographically agnostic VC that focuses on high total addressable market (TAM) opportunities, the firm has built a portfolio of companies including surgical robots & virtual reality (VR) developer Vicarious Surgical, proptech firm HomeBay, healthtech startup Frankie, and London-based app-enabled construction kits provider SAM Labs, shows its website.

SHK & Co, a major shareholder of consumer finance firm United Asia Finance, is expanding its external partnerships, including seeding and providing acceleration capital as it grows its fund management platform. The firm holds about HK$43 billion ($5.5 billion) in total assets as of June 30, 2020.

Earlier this month, SHK & Co had made a partnership and seed commitment of $150 million with East Point Asset Management, a newly established alternative asset management spinoff that was previously operating inside SHK & Co and managing internal capital.

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