Local crypto entrepreneurs are starting to raise more capital to expand their enterprises, thanks to the growing use of cryptocurrencies in Africa. This is especially true for VALR, a South African crypto-currency exchange that just completed a series B equity investment round. It was able to raise $50 million as a result of the operation, making it the largest capital raised by an African crypto exchange to date.
Conquer the African market and that of India
VALR was able to secure this record fundraising thanks to the support of key crypto venture capital firms including as Pantera Capital, Alameda Research, and Coinbase Ventures. This $50 million fundraising round raises the exchange’s valuation to $240 million, representing a 10x increase in value. VALR claims to have processed over $7.5 billion in trading volume since the beginning of 2019. According to CoinMarketCap, it now earns roughly 420 BTC in trading volume from 69 pairs.
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The funds raised in this round will be used to expand the exchange’s operations to additional emerging African markets as well as India. It should also use it to promote new products to its users and to employ additional talent to help the ecosystem grow.
“VALR contributes to the development of a financial system that recognizes the human race’s individuality. There is no longer any room for question about cryptocurrencies’ impact on the global financial system “VALR’s CEO and co-founder, Farzam Ehsani, stated.
Development of crypto services for institutions
After individuals, VALR now intends to attract more institutional clients from the continent, such as banks and insurance companies. As a result, the exchange has chosen to create a platform for the latter that includes a wide range of crypto services. He expects to be able to supply them with the crypto infrastructure they will require in the future.
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“Cryptocurrencies will become increasingly important in our daily lives. VALR is here to assist our institutional clients in making the transition from the old to the new financial system,” Mr. Ehsani said.
VALR’s record fundraising is merely a reflection of investors’ growing interest in the African crypto sector, which has tremendous development potential. Binance, the world’s largest cryptocurrency exchange, recognized this by becoming the exclusive crypto sponsor of the 2021 Africa Cup of Nations, which concluded last month.
crypto exchange Africa VALR crypto exchange Africa VALR
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer