InstaReM, the Singapore FinTech startup that enables banks and consumers to send money across borders, raised $41 million in venture funding.
According to a report in TechCrunch, the four-year-old startup raised the money in a Series C round of funding. In November it raised $20 million in capital from investors. The most recent round was led by Vertex Ventures’ global growth fund and Antinum Investment in South Korea. Also participating in the round was Ripple, the blockchain company that has its XRP cryptocurrency and has partnered with InstaReM to enable the startup to send payments around the world. InstaReM is using Ripple’s xRapid product to help banks and consumers, the report noted. To date, the startup has raised $59.5 million, according to the report.
Proceeds from the funding round are slated for expansion into Latin America, where the firm plans to open an office. The funds will also go to expand in Asia by going after Japan and Indonesia. The report noted the company is also nearing the launch of a prepaid debit card that it plans to issue to consumers in 25 countries. InstaReM also wants to offer more options to banking customers with the funding. Down the road, InstaReM is focused on launching an initial public offering in 2021.
InstaReM isn't the only payment company that is using xRapid to send payments around the world quickly and securely. In August Ripple announced it had brought on Bitrex to act as the preferred digital asset exchange for its transactions that move through U.S. dollars. In a press release, Ripple said that for xRapid to be successful, there needs to be a healthy ecosystem of digital asset exchange partners around the world that allow payments to move from one currency into XRP, then back into another currency quickly and efficiently. Financial institutions piloting xRapid saved 40 percent to 70 percent on average, compared to traditional foreign exchange brokers that facilitate cross-border payments, Ripple said in May.