South African Company Bags $50-Million in Africa’s “Largest-Ever” Crypto Raise
VALR.com, a South African cryptocurrency exchange, said today that it has raised $50 million (about R750 million) in Africa’s largest-ever cryptocurrency fundraising round. The company is now worth $240 million.
Pantera Capital led VALR’s oversubscribed Series B equity funding round, which included Alameda Research, Cadenza, CMT Digital, Coinbase Ventures, Distributed Global, GSR, Third Prime, Avon Ventures, a venture capital fund affiliated with Fidelity Investments’ parent company, as well as existing investors Bittrex and 4Di Capital and others.
Customers may safely purchase, trade, and store Bitcoin and 60 other cryptocurrencies on the crypto exchange firm’s platform, which has the largest assortment of any platform in Africa, at some of the lowest costs in the world. Since its introduction in 2019, VALR has processed over $7.5 billion in trade volume and now serves over 250,000 retail users and 500 institutional clients from around the world.
Expansion plans are already in the works
The funds raised will be used to expand across Africa and into other emerging markets such as India, as well as to deliver additional products and services to the company’s growing global customer base. VALR is also increasing its overall employment initiatives.
“The financial tools at our disposal should be utilized to bring us together, not to divide us,” says the author. That is why I am overjoyed that VALR is contributing to the building of a financial system that recognizes humanity’s interconnectedness. “There is no longer any question regarding the impact of crypto assets on our global financial system,” says Farzam Ehsani, CEO and co-founder of VALR.
“We already assist VALR’s customers in entering the new world of crypto from the existing financial system using their USD or ZAR, and I’m really excited that this round of funding will enable us to serve so many more people across Africa and the world.”
On the Right Track
Since its $3.4 million Series A round of fundraising in July 2020, VALR’s valuation has increased by more than 10X.
Pantera Capital Partner Paul Veradittakit states, “We are really excited to be leading the Series B round for VALR since we believe that Africa’s future is bright for the use of cryptocurrencies for both asset diversification and payments.”
“VALR offers a fantastic product and service to both retail and institutional customers.”
“Over the last few years, we’ve been quite impressed with what VALR has established for retail and institutional traders,” says Kumar Dandapani, Founder and Managing Partner at Cadenza Capital Management.
“VALR is in a strong position to establish itself as a long-term financial institution that offers asset allocation capabilities in crypto and other worldwide markets to its clients.”
VALR intends to bring onboard a slew of new traditional financial institutions, including the world’s largest banks, insurers, and hedge funds, to help them build the infrastructure they’ll need to enter the crypto asset market.
“The world is on the verge of a massive financial shift. Crypto assets will become increasingly important in our daily lives. VALR is here to assist our customers in transitioning from the old to the new financial system. We look forward to servicing you, whether you’re a person or an institution,” Ehsani said.
