INSUBCONTINENT EXCLUSIVE:
Instarem, a Singapore-based startup that helps banks transfer money overseas cheaply, has raised a Series C round of over $20 million for
global expansion.
The round is led by MDI Ventures — the VC arm of Indonesian telecom operator Telkom — and Beacon — the fund
belonging to Thai bank Kasikorn — as well as existing investors Vertex Ventures, GSR Ventures Rocket Internet and the SBI-FMO Fund.
The
money takes four-year-old Instarem to nearly $40 million raised to date, although Instarem co-founder and CEO Prajit Nanu told TechCrunch
that the startup plans to expand the Series C to $45 million
The extra capital is expected to be closed by January, with Nanu particularly keen to bring on strategic investors that can help the
business grow in new emerging markets in Latin America as well as Europe.
&We are a the stage where the color of the money is very
important,& he said in an interview
&Itis very key to us that we bring people into the round who can add value to our business.&
Nanu added that the company is speaking to
funds among other potential investors.
Instarem works with banks to reduce their overseas transfer costs, offering a kind of ‘Transferwise
Although, unlike Transferwise which uses a global network of banks to send money across the world, Instaremusesmid-size banks that already
trade in overseas currencies
As I previously explained,the process is the financial equivalent of putting a few boxes on a UPS freighter that about to head out, thus
paying just a sliver of the costs you&d incur if you had to find a boat and ship it yourself
Focused on Southeast Asia primarily, it services over 50 markets with transfers.The company does offer a service for consumers, but
financial institutions — which have ongoing demand and higher average spend — are its primary target.
Prajit Nanu founded Instarem in
2014 alongside Michael Bermingham
The company has offices in Singapore, Mumbai and Lithuania and it is opening a presence in Seattle as it
begins to look to broaden its business, which already includes three of Southeast Asia top ten banks
Nanu said that the company will try to work with banks and financial services such as cross-border services which target users with links to
Latin America and Mexico initially
In Asia, it is awaiting payment licenses in Japan and Indonesia which will allow it to offer more services in both countries.
TechCrunch
understands that the company is on the cusp of a deal with Visa that will allow its customers to roll out branded prepaid cards, adding
another financial service to its offerings
Nanu declined to comment when we asked about a deal with Visa.
TechCrunch has also come to learn that Instaremwas subject to an acquisition
approach earlier this year from one of Southeast Asia unicorns
Nanu declined to name the bidder, but he did tell TechCrunch that the offer &wasn&t the right timing for us.& He is, however, giving
increased thought to an exit via IPO.
Last year, when Instarem raised its $13 million Series B, he suggested that it could go public by 2020
Now that target date has shifted back to 2021, with the Instarem CEO telling TechCrunch that the U.S
remained the preferred option for a public listing when the time is right.
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