The cryptocurrency exchange New Zealand-based Easy Crypto has raised $ 11.75 million (NZ $ 17 million) on Series A funding at a time when the company has a potential future initial public offering (IPO) in mind.
The round was led by the Nuance Connected Capital venture capital fund. According to a release by Easy Crypto on October 6th the NZ $ 17 million figure “appears to have set a new record in New Zealand” for the largest Series A funding from a local company.
The financing round marks an important milestone for the company. Co-founder and CEO Janine Grainger expressed how difficult it was to get investments early on in the company because he works in the “marginalized” cryptocurrency sector.
The funds will be used to accelerate growth through product and technology development, investing in talent and expanding into new markets in Indonesia and the Philippines. to serve the non-banks.
The round was oversubscribed by 50% and involved a number of local and international companieslike the providers KiwiSaver, Pathfinder, Icehouse Ventures, Even Capital, GDP Venture (Indonesia), Hutt Capital (USA) and Seven Peaks Ventures (USA).
Easy Crypto was founded in 2017 by brothers Janine and Alan Grainger and generated sales of 760 million US dollars. (NZ $ 1.1 billion) from a customer base of over 150,000 in New Zealand, Australia, South Africa and Brazil. The platform hosts buy and sell services for 151 digital assets and also sells a range of hardware wallets from Trezor and Ledger..
According to Tech Crunch, which has not yet released the latest round of Easy Crypto funding, The largest series A funding rounds in New Zealand to date come from analytics firm Joyous and blockchain-based service provider FinTec TradeWindow, which have raised $ 10.3 million (NZ $ 15 million). The New Zealand artificial intelligence (AI) company raised most international funds in the US last month in a Series A funding round of $ 15 million ($ 21.6 million).
Speaking to the New Zealand Herald on October 6, Janine Grainger, Co-Founder and CEO of Easy Crypto, said: the company plans to use the funds to expand its overseas operations and enter new markets in Southeast Asia such as Indonesia and the Philippines:
“The reason we target these markets is because there are large numbers of people who don’t have a bank account and don’t have the same access to financial products as you and me.”
Grainger said that too the company is considering a possible IPO.
“We are still working on what it looks like and our plans for the future, but it is very likely that we will aim for an IPO.”, called.
That’s what the CEO said Easy Crypto generated $ 3.46 million in revenue (NZ $ 5 million) last year and is well on the way to double that amount this year.
According to the company, the customer base has “grown almost five times in the past 12 months”. Grainger told the NZ Herald that The company’s road to success has been tough as it took 13 months to get its first investment dollarbefore raising $ 11.75 million in three weeks in 2021.
“Cryptocurrencies are still seen as something marginal, something volatile, and I think it has taken a while to find investors who have this vision and strategy of the future to bet on what we’re doing.”, called.
In New Zealand there was a certain pallor over the industry when the now defunct cryptocurrency exchange Cryptopia fell victim to a major hack in 2019.. Roughly between $ 16 million and $ 18 million in cryptocurrencies have been stolen from the platform.
Cointelegraph reported in July that A former Cryptopia employee pleaded guilty to stealing around $ 172,000 worth of cryptocurrency obtained from a copy of users’ private keys while working at the company.