• CDIB Capital leads a $17 million funding round for Taiwan’s XREX Blockchain Firm

  • XREX Inc., a Taiwanese blockchain TradeTech company, has closed a $17 million funding round led by investment firm CDIB Capital Group (CCG) and several prominent investors.

    According to a press release shared with us on Monday, the pre-Series A round was oversubscribed by 200 percent. When asked why XREX chose a pre-series A round, Wayne Huang, co-founder and CEO of XREX, told CoinDesk on Sunday that they felt they hadn’t raised enough revenue.

    “Originally, we were only aiming for $5 million to $8 million, which would give us enough of a buffer to cushion any covid-caused uncertainty and enough revenue to do a Series A,” Huang explained. “However, as traction grew and investors showed their support, we became oversubscribed and decided to increase the round size.”

    In the interim between the seed funding round and the Series A, companies can gauge investor interest with a pre-Series A funding round. The funds will be used to expand the firm’s fiat currency portfolio, acquire additional licenses, and strengthen relationships with financial institutions and digital wallet providers.

    SBI Holdings subsidiary SBI Investment, Global Founders Capital, ThreeD Capital, E.Sun Venture Capital Systex Corporation, Metaplanet Holdings, AppWorks, Black Marble, New Economy Ventures, and Seraph Group were among the other investors.

    According to its website, XREX is a blockchain TradeTech company that aims to help merchants in emerging economies “accelerate” international transactions by providing software-as-a-service.

    The company has created software solutions such as BitCheck and MyXchange to help merchants and SMEs in emerging markets reduce foreign exchange losses and gain access to US dollars.

    “Some investors are eyeing emerging markets as the next global growth hubs and are eager to partner with companies that are well-versed in the local financial markets,” Huang explained.

    “Despite the fact that they have portfolios that leverage blockchain to facilitate inter-bank cross-border settlement, there have been very few FinTech companies that provide solutions for emerging market SMEs.”

    Meanwhile, CCG, formerly China Development Corporation, was Taiwan’s first private development-oriented financial institution, managing $2.3 billion in portfolio companies.

    “CDIB was an early investor in XREX,” said Ryan Kuo, managing director of the CDIB Capital Innovation Fund. “We were determined to double our investment and lead this strategic round after witnessing the company’s rapid revenue growth and commitment to compliance.”

    In 2019, XREX closed a $7 million seed round led by AppWorks, with participation from Skype’s late cofounder Toivo Annus, Metaplanet Holdings, Black Marble, and CCG, among others.

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