Fintech startup Escrowpay on Thursday (October 26) said it has signed a definitive agreement to raise an additional $4 Mn via issuance of warrants, taking its total fund raise till date to $6 Mn.
The fundraise is part of Escrowpay’s extended Series A round under which it aims to secure capital to the tune of $15 Mn.
In addition, the escrow banking startup also claimed that it has become the first company to receive the maiden digital ‘escrow regulatory fintech authorisation’ from the International Financial Services Centres Authority (IFSCA), located in Gujarat International Finance Tec-City (GIFT City).
Escrow is a contractual arrangement under which an asset or money is held by a third party, and is only released to the intended party after the fulfillment of predetermined contractual obligations. Escrowpay leverages technology to make the process digital-native, transparent and efficient.
The authorisation will enable the platform to commence cross-border transactions in more than 14 global currencies and roll out financial solutions to Indian small and medium enterprises (SMEs). The nod will also allow Escrowpay to further bolster its suite of offerings and ensure adherence to compliance measures in the digital payments arena.
The authorisation will position Escrowpay as a responsible and trusted player with regulatory oversight in the fintech sector, the startup said.
“The authorisation will enable the company to further bolster its suite of offerings and commence cross border transactions in over 14 world currencies. As we celebrate this significant milestone, we extend our gratitude to our customers, banking partners, and the dedicated Escrowpay team whose hard work and commitment have made this achievement possible,” said Escrowpay cofounder and managing director Ashwin Chawwla.
Founded in 2015 by Chawwla and Subhrangshu Neogi, Escrowpay claims to offer secure, accessible and transparent digital escrow services for both businesses and individuals. It claims to offer services to more than 3,000 clients, including MSMEs, unicorns, and listed enterprises. Escrowpay claims to have processed transactions to the tune of INR 15,000 Cr till date.
The startup plans to follow UPI’s lead and expand globally, with a focus on cross-border transactions and establishing a physical presence in international locations such as the UAE. It has seen rapid growth over the last two years and is looking to integrate with five major banks in the UAE next year.
The startup is backed by names such as Tano India Opportunities Fund, Zenith Global Group, We Founder Circle, JB Ventures, AngelList, Inflection Point Ventures, Chhattisgarh Investments, among others.
In India, the startup competes with the likes of Razorpay, Castler, Neutron and Cashfree Payments.
As per a report, the global cross-border payments market is projected to grow to a market size of $238.9 Bn by 2027.
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