from China XTransfer, a single provider of cross-border financial and risk management solutions, raised $ 138 million in capital through its Series D funding round.
XTransfer’s investment round was led by D1 Capital Partners, as well as existing shareholders also making contributions.
XTransfer will use the funds to further improve its range of products and services. The company will continue to invest in Big Data and AI, strengthen its risk management system and AML, and focus on attracting new talent to support its global expansion efforts.
Since its launch in May 2017, XTransfer has completed several fundraising events with the participation of leading international investors. The backers of the company are said to be Yunqi Partners, Gaorong Capital, 01 Capital, eWTP Capital, Telstra Ventures, MindWorks Capital and Lavender Hill Capital Partners (LHCP).
Based in Shanghai, XTransfer has sales offices in Hong Kong, UK, Canada, US, Japan, Australia and Singapore. The company focuses on cross-border B2B financial services and has a customer base of around 150,000 SMEs.
XTransfer’s D-Series cycle was announced as Chinese exports started to recover and hit all-time highs in the first 8 months of this year. As international trade continues to accelerate, exports during this period grew by around 23.2%, which is notably the fastest rate of increase in the past 10 years.
The rise of cross-border digital commerce has also had a huge impact on B2B commerce. Cross-border e-commerce has a decisive advantage in helping SMEs conduct international business, improve supply chain efficiency and create more jobs, according to Wei Jianguo, Deputy Director of China Center for International Economic Exchange and former Deputy Minister of Commerce.
He also noted that over the next two years, Chinese imports and exports are expected to continue growing at double-digit rates, and digital commerce platforms such as cross-border B2B e-commerce will also experience steady growth.
In their journey to become truly global, small businesses face the challenge of accessing conventional banking services. In B2B commerce, exporters tend to be smaller and sell a range of products, resulting in a fragmented cross-border payment environment and more frequent remittances. The tightening of anti-money laundering guidelines around the world has further restricted SMEs’ access to traditional banking services.
Through partnerships with established global banks and financial institutions, XTransfer has introduced a globally unified, multi-currency financial settlement network. He developed a data-driven, automated and intelligent AML infrastructure to meet the needs of small businesses. New export-related financial services such as XTransfer could start to close the gap between supply and demand.
XTransfer provides SMEs with cross-border financial services that are equivalent or comparable to those available to multinational companies. This is done while respecting AML and bank compliance guidelines.
These services include free and rapid opening of collection accounts, foreign exchange and currency settlement, providing small, B2B-oriented exporters with secure, stable and affordable services.
Bill Deng, Founder and CEO of XTransfer, said:
âCross-border e-commerce is growing in leaps and bounds thanks to political support. For exporters, the latest wave of overseas expansion was very different from that of a few years earlier, marked by diverse sales channels and fragmented orders. Digitization is a major trend amid fierce competition in the market. We will continue to promote the digitization of exports and support the digital transformation of the sector. In doing so, we have earned the trust of our customers through our service. The current round of funding is just the beginning of our quest to provide better service to more clients. “
Ray bao, a partner at D1 Capital Partners, the leading investor in the Series D cycle, said:
âWe believe that XTransfer’s services are an indispensable addition to the global trade finance ecosystem. Over the next decade, we anticipate that they will be able to serve SMEs around the world and that they will be a major financial infrastructure company in global cross-border trade.
Mao Chengyu, founding partner of Yunqi Partners, added:
âCross-border B2B commerce is very fragmented and full of smaller players. E-commerce digitization and penetration levels are at an initial stage. We expect a super-app to connect all stakeholders on a mega-platform. As XTransfer’s first investor, I have confidence and bet big on payments and the leading role risk management plays in this industry.