A South Africa based cryptocurrency exchange, Valr has just raised $3.4 million in a Series A funding round led by 100x Group, the parent company to Bitmex.
The funding round, in which 4Di Capital also participated, however, does not change Valr’s controlling shareholder structure.
In a podcast with SA Crypto, Valr CEO, Farzam Ehsani explains the significance of getting the funding at a time when investor mood has been dampened by the effects of the global pandemic, Covid-19.
A statement by Ehsani is touting the addition of 100X Group, the recently rebranded parent organisation of Bitmex, to Valr’s distinguished shareholder profile:
“I am very grateful that despite the challenging global COVID-19 pandemic that has adversely affected many businesses around the world, Valr has been able to grow at a phenomenal pace and we’ve been able to raise funds and partner with a set of world-class investors, adding to our already distinguished group of shareholders.”
Ehsani also confirms that Bittrex, one of Valr’s seed investors, will remain a shareholder in Valr after turning down offers to buy it out. Investors are seemingly happy with the trading volumes that show “a remarkable growth” for an exchange that launched in 2019.
Already, Valr’s data shows “they have achieved a trading volume of 12,720 bitcoin this month.” This volume places Valr “ahead of Luno—another South African cryptocurrency exchange— whose data shows a monthly trading volume to date of 10,970 bitcoin.”
Meanwhile, the SA Crypto report quotes Justin Stanford Co-Founding General Partner at 4Di Capital saying his company had been eyeing out the crypto sector for some years now.
“We’re delighted to be backing such a high-quality business and management team. Valr has shown great integrity and leadership coupled with impressive growth, and delivers a mature, institutional-grade offering to the local market.”
Valr says it plans on using the raised capital to build new products and services, expand into new territories. It also wants to continue building its team of professionals – particularly in the technology, regulatory and compliance, and client service domains.
What do you think about this fundraising success by Valr? Tell us your thoughts in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Credit: Source link