Currency trading and payment platform, VertoFX, has raised $2.1 million dollars in a seed round that was led by Accelerated Digital Ventures. The investment round also had participation from several angel investors in Africa as well as companies like Y-Combinator.
The startup which was founded five years ago by two Nigerian ex-global bankers Ola Oyetayo and Anthony Oduwole is based in London and has a subsidiary in Lagos, Nigeria. It is registered as a payment services provider with the UK’s financial authority and creates a platform that allows businesses and banks to make payments and exchange in exotic foreign currencies which do not trade conveniently or convert often across businesses or banks.
VertoFX creates a marketplace, liquidity through technology, and price discovery for illiquid and thinly traded currencies such as the Thai baht, Uruguay peso, and the Iraqi dinari. It currently has 19 currencies on its platform and does business in 120 countries.
The startup which is already working on rendering market research for potential subscription services on the currencies it trades is also planning on using the new investment round to develop its platform, expand its currencies and obtain licenses in new countries to do business.
The startup, as a part of the 2019 winter cohort of Y-Combinator, processed about $7 million in transaction volume in June and plans to increase the volume as it gains new licenses to trade currencies in other countries where it may be difficult or expensive to trade or transact B2B payments in.
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