Friday, July 1

New Zealand’s Easy Crypto Raises $ 11.75 Million, Targets Stock Market Float

New Zealand-based crypto exchange Easy Crypto has raised $ 11.75 million (NZD $ 17 million) in Series A funds as the company anticipates a possible initial public offering (IPO) in the future.

The round was led by the venture capital fund Nuance Connected Capital. According to an October 6 ad From Easy Crypto, the NZD 17 million figure “seemed to have set a new New Zealand record” 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 has expressed how difficult it had been to get investments in the early stages of the company due to work in the “fringe” crypto sector.

The funds will be used to accelerate growth through product and technology development, investment in talent and expansion into new markets in Indonesia and the Philippines to serve the unbanked.

The round had a 50% oversubscription and included participation from a number of local and international companies, including provider KiwiSaver, Pathfinder, Icehouse Ventures, Even Capital, GDP Venture (Indonesia), Hutt Capital (US). And Seven Peaks Ventures (USA).

Easy Crypto was founded by brothers Janine and Alan Grainger in 2017, and has generated sales worth $ 760 million (NZD 1.1 billion) to date, from a customer base of over 150,000 in New Zealand, Australia, South Africa and Brazil. The platform hosts buying and selling services for 151 digital assets and also sells a range of hardware wallets from Trezor and Ledger.

According to Tech Crunch, which has yet to list Easy Crypto’s latest round of funding, the larger Previous Series A funding rounds in New Zealand are from analytics firm Joyous and blockchain-based service providers FinTec TradeWindow, which raised $ 10.3 million (NZD $ 15 million) each. New Zealand-based artificial intelligence (AI) firm Vital raised the most internationally through a Series A funding round of US $ 15 million (NZD $ 21.6 million) in the US. . Last month.

Janine Grainger, Co-Founder and CEO of Easy Crypto speak to the New Zealand Herald on October 6 and said the company plans to use the funds to increase its overseas operations and target new markets in Southeast Asia, such as Indonesia and the Philippines:

“The reason we are targeting those markets is that there is a large population of people who are unbanked or unbanked, and they don’t have the same access to financial products as you and me.”

Grainger also said the firm is considering a possible IPO.

“We are still working on what that looks like and what plans there are for us in the future, but it is very likely that we are looking for an IPO,” he said.

The CEO said that Easy Crypto generated $ 3.46 million (NZD $ 5 million) in revenue in the previous financial year, and is on track to double that amount this financial year.

According to the firm, its client base has grown “almost five times in the last 12 months.” Grainger told the NZ Herald that the company’s path to success has been difficult, as it took him 13 months to get his first investment dollar, before he could raise $ 11.75 million in three weeks in 2021.

“The cryptocurrency is still considered a bit marginal, a bit volatile and I think it has taken us a while to find investors who maybe had that strategic and forward-looking vision to be able to bet on what we are doing,” he said. said.

Related: New Zealand central bank publishes document on digital currency

There has been something of a pallor over the industry in New Zealand as Cryptopia, now defunct cryptocurrency exchange, became the victim of a major hack in 2019. Roughly between $ 16 million and $ 18 million worth of cryptocurrencies were pulled from the platform .

Cointelegraph reported in July that a former Cryptopia employee pleaded guilty to the theft of around $ 172,000 in crypto that he obtained by making a copy of users’ private keys while working at the company.