The Chinese startup XTransfer has reportedly raised US $ 138 million Nikkei Asia, 17th of September. Founded by several Ant Group alumni, the company is valued at over a billion dollars after just four years of existence.
A growing startup
XTransfer, based in Shanghai, provides currency and payment management services to more than 150,000 import and export small and medium-sized enterprises (SMBs), most of which are based in China. The startup has been very dynamic in recruiting 400 employees since the beginning of the year in order to reach a workforce of more than 1,000 employees, the goal is to reach 1,300 employees by the end of 2021. The founders say it has been profitable since April 2020.
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The round table, led by the American investment group D1 Capital Partners, is intended to finance investments in big data and AI. The aim is to strengthen the money laundering risk management system and attract international talent for expansion.
XTransfer is called ” PayPal for cross-border trading “With the takeover of GoPay by PayPal, the American company has also placed itself in direct competition with XTransfer. Bill Deng, CEO of the start-up, showed his ambition Nikkei Asia declare that his ” The plan is to serve SMEs around the world, starting with Southeast Asia, which is where we are already established In a previous statement, he said he plans to expand to the Philippines, Indonesia, Thailand and Vietnam from the XTransfer offices in Singapore.
XTransfer powered by a favorable context
The success of XTransfer is not surprising, because the FinTech industry is currently dynamic. In addition to D1 Capital Partners, who are represented in many Chinese tech companies, XTransfer has attracted investment from an Australian telecommunications operator, Telstra, a Chinese state-owned conglomerate, an Ant and Alibaba-backed fund, and others based in Hong Kong and China.
China’s exports in very good shape contribute to the success of XTransfer. In the first eight months of 2021 they rose by 33.7% compared to 2020. A value that has to be put into perspective with the Covid-19 effect, but is still well above market expectations. A development that is mainly driven by SMEs is stacking the hunting ground of XTransfer.