Transak said that the funds raised will go towards global expansion by building onboard solutions, financial applications, as well as Web3 games.
Web3 crypto startups have been recently on the radar of investors and have been raising funds even in the current macro scenario. On Tuesday, May 30, Web3 payments startup Transak announced raising $20 million in a Series A funding round led by early-stage venture capital firm CE Innovation Capital.
The renewed capital shall go towards a continued global expansion by building onboard solutions, financial applications, as well as Web3 games. Transak is a global Web3 payment and onboarding platform facilitating seamless transitions between the traditional and crypto platforms.
The company specializes in abstracting away the complexity of onboarding and risk mitigation of KYCs. Transak says that it has been supporting a total of 160+ cryptocurrencies across 75 blockchains. Sami Start (CEO) and Yeshu Agarwal (CTO) co-founded Transak identifying the need for Web3 developers to onboard users with fiat.
Transak is currently registered as a crypto asset firm with Beritain’s top regulator Financial Conduct Authority (FCA). Besides, it also has been recognized as a virtual asset service provider (VASP) in Poland. The company is looking to obtain additional licenses and establish its presence in other regions such as the Middle East and Southeast Asia, along with other Asia Pacific regions.
Bingze Gu, Partner at CE Innovation Capital and lead investor in Transak, highlighted that Transak is a pioneer in Web3 regulation. He emphasized that their services go beyond reducing barriers and are actively reshaping the landscape of Web3.
Transak Onboarding More Users into Web3
As the Web3 world continues to make strong progress, several companies and crypto players are now looking to shift their Web2 users into Web3. Some players also see this transition as a speedy pathway to onboard the next billion users into Web3.
However, the Web3 world of today needs to evolve further as it faces the challenges of clunky user interfaces that don’t feel organic to several Web2 users. A large number of infrastructure projects in the Web3 space are looking to correct this user experience problem.
According to the company, integrating Transak’s payment and onboarding infrastructure into a Web3 platform simplifies the process of buying and selling crypto assets. It creates a more familiar experience for Web2 users.
Transak takes care of Know Your Customer (KYC) requirements, risk monitoring, compliance, payment methods, and customer support. Their product suite includes on-ramps and off-ramps for converting fiat currency to and from cryptocurrencies, a solution called Transak One for fiat-to-smart contract transactions, and a checkout option for converting fiat to non-fungible tokens (NFTs).