London-based VertoFX has announced a $2.1m seed round to build b2b cross-border payments for emerging markets. The raise comes after the company graduated from YCombinator this year.
VertoFx is aiming to solve the significant issues in cross-border payments; with a focus on businesses in emerging markets. Founded in 2017 by Nigerian-born, British ex-bankers Anthony Oduwole and Ola Oyetayo, VertoFX provides a one-stop service that lets companies gain easy access to foreign currencies and make international payments to their suppliers abroad seamlessly.
Cross-border payments and foreign exchange are complex and largely depend on correspondent banking infrastructure. Current solutions from incumbents such as banks and more recent digital challengers are costly and lack transparency.
This problem is more acute for companies in emerging markets that deal with exotic currencies that are sometimes illiquid or infrequently traded. By utilising a peer-to-peer model where businesses with foreign currency needs are matched with each other via algorithms on a regulated and secure platform, VertoFx enables these businesses to access currencies cheaper, faster and more securely.
Ola Oyetayo, CEO and Co-Founder said: “we are in the early stages of helping businesses in emerging markets solve a significant problem they currently face and the funds we have raised will help put some fuel in our bus for the journey.
“We spoke to a number of investors after YC’s demo day but ADV’s patient capital ethos resonated strongly with Anthony and I. We are glad to have them and everyone else that participated in the round on board and are especially thankful to YCombinator for teaching us to build something people want.”
Tong Gu, Investment Lead at ADV commented: “The VertoFX team has already shown an incredible amount of tenacity in relocating for the YCombinator programme. With the product, regulatory license and team already in place, the team has made great progress and we’re so excited to be part of this journey with them.”