Bitso, a crypto exchange in Mexico, managed to raise $62 million to expand in Brazil. The exchange wants to make rapid strides in South America, which it considers a large market.
A news article on Theblockcrypto has claimed that Mexico exchange Bitso raised $62 million in cash for it to expand to countries in South America like Brazil. They plan on increasing the number of users to double next year.
In a press release, they said that they were able to close a $62 million fund in a Series B round that was done by QED Investors and Kaszek Ventures. Coinbase and Pantera Capital were also notable participants in the deal.
They have not given the details about the valuation of the raise conducted or revenue figures. tablelead #startservingmore is a sales-as-a-service platform, had tweeted on Bitso raising $62 million as it wants to expand in South America.
Crypto exchange Bitso raises $62 million as it eyes expansion in Brazil https://t.co/hAjkdfnBeZ
— tablelead #startservingmore (@tablelead) December 10, 2020
Bitso was able to raise $2.5 million in 2016 in a Series A1. During the time, they were valued at $10 million and had 6 employees working for them. Today, they have more than 200 employees working for them.
Daniel Vogel, who is the CEO, explained that using the new inflow of money, they will want to expand in countries like Brazil, where the market is high. During an interview, Vogel told the Block, participants who took part in the Series B felt that the country has a robust potential growth opportunities.
In caparison to Mexico, Brazil is quite big, and it is surprising that the exchange there, is bigger than what they have in Mexico, even like Bitso. They want to capitalize on that opportunity and do the exact same thing that they did in Mexico, to Brazil.
Bitso has made its presence felt in Argentina and was able to make more than 75%. With their market in Brazil, there is a strong chance that the number of users could reach their target, which is 1 million, by 2021.
He feels that the business of exchanges can be tricky and complicated for trading fees. That is because, they can collapse continually, but with strategic decisions like the one, they took, the increase of funds is on the rise to $35 billion by 2021.