Indonesian remittance startup ZendMoney is in talks with venture capital players to raise a $3-5 million Series A financing round, according to sources familiar with the development. The startup plans to use the proceeds to fuel its growth plans and improve its brand positioning.
ZendMoney had raised its previous round from angel investors working in the technology and telecom sectors.
According to sources, some potential investors with whom initial discussions have taken place include Singapore-based Insignia Ventures Partners, early stage fintech investor Finch Capital and Monk’s Hill Ventures.
In response to a query from this portal, Insignia Ventures said it is not an investor in ZendMoney.
ZendMoney claims to provide cross-border money transfer services in an affordable, faster and secure way. The company, which has served 30,000 users to date, claims a 10 per cent month-on-month growth in revenue.
In an email interview, ZendMoney founder Bong Defendy said, “More and more people need efficient, robust and secure remittance services. This is where we come in.”
“Indonesia is making great progress in e-commerce and we also plan to become like Aliexpress – which means when people buy things online from different countries, ZendMoney can be the payment processor for this type of international commerce.”
Indonesia’s inbound remittance market is estimated at around $9.2 billion and inflows predominantly originate from Malaysia and the Middle East.
ZendMoney’s business model is similar to that of Singapore-based Toast, a fintech startup that allows people to make cross-border money transfers directly from a smartphone. The Singaporean firm had last raised $1.5 million in a round led by Aetius Capital in 2016.
Other players in the same space include Xpress Money, Sendah and Western Union while banking-affiliated remittance players are Mandiri, PayPal and Moneygram.
Australia-based Airwallex, which offers solutions for cross-border transactions and international money transfers, recently closed an $80-million Series B round from return backers Tencent and Sequoia China, and others.
European fintech startup Azimo recently closed a $20-million series C funding round led by Rakuten Capital, the investment arm of Japan’s Rakuten Inc. Azimo enables payments in more than 80 currencies and 190 receiving countries.