South Africa-based cryptocurrency exchange VALR, announced in the early hours of today that it has raised $50 million in a Series B funding round. Per the company’s published Press Release, the funding round is one of the largest in Africa and has currently placed the firm’s valuation at $240 million.
VALR allows its users to purchase, sell and keep certain digital coins, especially Bitcoin (BTC), in a secured domain. VARL charges a low fee for these trading activities to encourage large investments from users.
This round was spearheaded by Pantera Capital in collaboration with fresh investors like Coinbase Ventures, Alameda Research, Cadenza amongst many others. These new investors joined existing backers like Bittrex and 4Di Capital to complete the fundraiser.
The South African trading platform commenced Rand-to-Bitcoin trading in 2019 and since then till now, and has managed a trading volume of over $7.5 billion. The company boasts of over 500 organisations and 250,000 individuals as its clients.
There has formerly been a Series A funding round in 2020 and the funds raised amounted to $3.4 million at the time. The Series A funding round came at a time when VARL was aiming for market expansion in South Africa and exploring the introduction of trading and lending services.
The funds received from by VALR in the Series B funding round will be utilized in expanding its businesses in the African region and will go as far as India, introducing additional products to its clients. The exchange also has plans for additional recruitment to increase its workforce across all teams.
VARL Chief, Farzam Ehsani stated that the impact of digital assets on the globe can not be overlooked. The financial market has experienced a huge turn up which is largely influenced by crypto. He expressed his excitement on the actualization of the Series B funding round, saying it would help the exchange reach more customers.
Continuous Venture Capital Funding for Crypto Startups
Blockchain startups have continued to tap venture capital funding in recent times. One of these is Norwegian blockchain research tool Dune Analytics which recently entered into a Series B funding round. A total of $69,420,000 was realized and this fundraised the valuation of Dune to $1 billion.
The Dune Analytics Series B funding was led by Coatue with participation from Dragonfly Capital, Multicoin Capital and others. The utilization of the funds will be towards the empowerment of young talents that will properly explore the Web3.0 space.