Singapore-based digital assets exchange Zipmex has bagged $41 million in an oversubscribed Series B funding round from investors including Krungsri Finnovate Company Limited, the corporate venture capital arm of the Thailand-based Bank of Ayudhya PCL.
The investment by Bank of Ayudhya marks the first time that a bank in Southeast Asia is investing in a digital asset platform, according to a statement by Zipmex on Tuesday.
Also participating in the round were Plan B Media Public Company Limited, US-based Jump Capital, MindWorks Capital, and Master Ad Public Company Limited (MACO).
Zipmex’s total funding now stands at $51.9 million. In January, it had landed $6 million in a financing round led by Jump Capital.
“The fresh funds will be used to expand the team in the areas of risk compliance and technology, expand products, as well as fuel expansion in Thailand and Indonesia,” said Zipmex founder and CEO Marcus Lim.
Zipmex currently commands a “nine-digit” valuation, added chief marketing officer Proud Limpongpan, declining to reveal more details. “We expect our assets under management (AUM) to increase from $500 million in December 2021 to over $8 billion by end-2023.”
Founded in 2019, Zipmex allows users to buy, sell, and earn interest on digital assets such as bitcoin and ethereum on its app and website.
The startup claims it stands apart from other digital assets exchanges as a digital assets bank. “Since January, our ZipUp (flexible savings) and ZipLock (fixed savings) products have grown by at least 450%,” said Lim, who previously founded Oneflare.com.au, an Australian marketplace for local services, which was acquired and became part of the ASX-listed Domain Group.
Zipmex claims that it has a user base of 899,000 users on its platform, with over $4 billion traded to date. It currently operates in Indonesia, Australia, Singapore, and Thailand.
The startup is currently applying for a Major Payment Institution licence with the Monetary Authority of Singapore (MAS) for, among other things, digital payment token services. After which, they will be looking to launch formally in Singapore.
Lim has previously spoken about Zipmex’s plans to go into payments and lending. Earlier in the month, the company announced a strategic partnership with Visa Asia Pacific, with plans to launch a visa-payment card – ZipCard – that would allow its users to convert their cryptocurrency to fiat currency to spend at more than 70 million merchants in Visa’s network.
“Our release date of ZipCard is initially planned for a small invite only release in Q4 this year before opening up to full applications in 2022,” Lim told DealStreetAsia in an exclusive interview.
“We will also soon be introducing Zlaunch — a platform that gives users early access to new investment tokens,” added Lim.