The Tiger Global Management LLC-backed start-up is talking with potential backers with the aim of raising at least US$50 million (RM223 million), according to people familiar with the matter, who asked not to be identified as the talks are private. The size of the raise and BVNK’s valuation are subject to change at this early stage of negotiations, the people added.
BVNK declined to comment in response to questions from Bloomberg News.
Fintech giant Stripe announced a US$1.1 billion deal to acquire stablecoin start-up Bridge in October, stoking interest in the sector. There is strong investor appetite for the BVNK round, as well as for stablecoin payments start-ups in general, the people familiar with the matter said.
Stablecoins are a type of cryptocurrency designed to mimic the price of an established fiat currency and are typically underpinned by reserves. Minimal volatility made them a popular tool for money transfers, originally among crypto firms, and increasingly for corporates. Stripe co-founder Patrick Collison said in an X post in October that the technology would bring “significant speed, coverage, and cost improvements” for businesses.
Venture firms profited handsomely from the Bridge deal, with lead investor Sequoia Capital raking in over US$100 million, Bloomberg News earlier reported. Chris Ahn, a partner at Haun Ventures, which had a 4% stake in Bridge, touted the deal as a “trigger moment for other tech firms to go on the offensive”.
On Wednesday, crypto exchange operator Coinbase Global Inc announced the acquisition of Utopia Labs, a stablecoin payments start-up.
London-based BVNK was founded in 2021, employs more than 270 people and processes US$8 billion in payments annually, according to its website. The start-up last raised money in May 2022, when it secured US$40 million in a round led by Tiger Global. Other backers include The Raba Partnership, Avenir, Kingsway Capital, Nordstar, Concentric, and Base Capital.
The company holds regulatory licences in countries including the UK, Spain, South Africa and Malta, according to its website.
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