Transak funding

Transak, a fiat-to-crypto payment gateway, has announced that it has acquired funding of $660,000 (approx Rs 4.8 crore) in a seed round led by The Lao, Consensys, Koji Capital, IOSG, Lunex, and other angel investors.

Transak is a fiat-to-crypto payment gateway that simplifies the process of buying and selling cryptocurrency, enabling both mainstream users and businesses to access crypto and blockchain. It enables users to use their fiat currency to buy cryptocurrencies and vice-versa, acting as both an on-ramp for applications.

According to Investopedia, Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed. Most modern paper currencies, such as the US dollar, are fiat currencies.

The company is planning to expand its work base, operations, and partnerships in India, and is planning to use the acquired amount to recruit more engineers and expand its team in the country. Transak is currently operating in more than 60 countries and plans to expand and unify this coverage by the end of 2021.

Transak acts both as a B2C platform where a person can buy cryptocurrencies directly into their wallet using fiat money, and a B2B platform in the form of a developer integration that can be accessed by third-party applications and websites. Transak allows for applications to enable the use of cryptocurrency for transactions via its application. On Transak, a person will be able to buy cryptocurrency through bank transfers, debit/credit cards, wallets, and various payment applications worldwide.

Transak is consolidated with fiat payment methods worldwide that can be used to make the purchase. Presently, the company is working closely with other players in the Indian blockchain ecosystem, including WazirX and Matic Network. Globally, Transak is consolidated by top wallets and apps such as Klever Wallet, Metamask, and Edge Wallet, and top DeFi apps such as Index Coop, Maskbook, and Aave.

London-based Transak said in a statement that India’s cryptocurrency trading community has increased many times over, but still represents a small portion of the world’s youngest economy. Many potential traders and investors are gravitating towards decentralized finance due to high returns and constant expansion of the market. The Indian talent in the crypto ecosystem has shown exceptional performance and has driven remarkable results for various players in the industry. Thus, the startup plans to acquire the best Indian talent to create a strong team for operations in the country.

Whilst traditional crypto exchanges enable users to trade and speculate on cryptocurrencies, Transak aims to enable users to access cryptocurrency from fiat to use blockchain applications, decentralized finance (DeFi) payments, and various other applications. Whilst these applications are still in their early stages, they are expected to be utilized not only throughout India but the world to fuel the lives of individuals and businesses within the next five years.

Sami Start and Yeshu Agarwal, Co-founders, Transak said, “We are extremely confident about our expansion plans in India. The Indian blockchain market is growing rapidly and needs on and off-ramps to make the crypto world accessible to all. The company is excited to acquire fresh Indian talent, which is known to be exceptional across the globe and is dedicated to building a strong team in the country to take over the Indian operations. We are highly motivated to ease the friction in the global crypto market and take decentralized finance mainstream.”

In 2021, both the founders plan to expand to more fiat payment methods, refine and scale their core processing engine, affiliate with more blockchains and protocols, as well as explore new markets (with keen attention on India) that are built on top of fiat-to-crypto payments.