Currency Cloud is a UK-based FinTech company which provides digital payments platforms to businesses to move money around the world. The company recently raised $18 million in Series C funding which will be used to drive expansion in the US.
Sapphire Ventures (formerly SAP Ventures) and Japan’s e-commerce giant Rakuten led the Series C round of funding. Existing investors Anthemis, Atlas Ventures, Notion Capital and XAnge Private Equity also participated in the funding round.
Launched in 2012, the company has raised funds close to $18 million as of January 2014 backed by four leading FinTech investment firms—Atlas, Anthemis Group, Notion Capital and XAnge. The new round brings the total funds raised by the company since 2012 to $36 million.
In an article by The New York Times, Chief Executive Mike Laven said that Currency Cloud processes about $10 billion (£6.3 million) annually and that the figure should rise to $1 billion a month by the end of the year.
In this round, Sapphire and Rakuten were added as strategic investors who will help Currency Cloud in its expansion plan. Currency Cloud will work with SAP, a provider of services to businesses, so that the firm will introduce Currency Cloud’s technology to their business customer base. On the other hand, Currency Cloud will leverage Rakuten’s financial services by integrating their payment API within their services.
UK mobile payments and online payments businesses are showing significant growth by attracting large amounts of investment. Last week, Azimo raised $20 million funding in addition to TransferWise raising $58 million in January. Both these companies use Currency Cloud’s main technology called Payment Engine and by way of an API, this sits as the essential engine behind a number of other services.
Currency Cloud is able to grab the market share with their technology by providing transfer services at lower fees and reduced time compared to banks.
"The existing system that goes through banks is expensive, it's cumbersome, it's full of friction and is complex, and there's a lack of transparency. We think it's worse for businesses than it is for individuals," Laven said to Reuters.
Andreas Weiskam, Managing Director at Sapphire Ventures, will join Currency Cloud’s board as part of their investment.
“Sapphire Ventures is committed to backing high-growth companies with the potential to disrupt markets globally,” he said in a statement. “By enabling transparent, efficient and secure transactions, Currency Cloud is revolutionizing how businesses can move money worldwide. We are excited to draw upon our enterprise DNA and international experience to help Currency Cloud scale and continue pushing the barriers to challenge how financial services are delivered.”