Bahrain-headquartered cryptocurrency exchange Rain Financial has raised $110 million in a Series B funding round co-led by San Francisco-based investment fund Paradigm and Silicon Valley VC firm Kleiner Perkins, it announced in a statement.
The financing round also saw participation of different new and existing investors including US-based Coinbase Ventures, Middle East Venture Partners, crypto-focused fund CMT Digital Ventures, Global Founders Capital, and Cadenza Ventures. Rain had raised $6 million in a Series A in January 2021 and $2.5 million in a seed round in July 2019.
Founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago, and Yehia Badawy, Rain became the first cryptocurrency exchange to secure a regulatory licence in the Middle East in 2019. The platform allows users in Bahrain, Saudi Arabia, United Arab Emirates, Kuwait, Oman, and beyond to buy, sell, and store cryptocurrencies through its web and mobile-based portal.
Having earned its license from the Central Bank of Bahrain, Rain Financial also in talks with regulators in the Middle East to widen its reach. The exchange, which also operates as a crypto-asset broker, plans to use the fresh capital injection for a regional expansion and to grow its team, as well as strengthening its technological platform.
Bahrain has become a crypto-friendly hub
“We are very excited about this funding opportunity as it allows us to continue conversations with regulators across the MENA region, Turkey, and Pakistan about the benefits and potential of cryptocurrency,” said Rain’s co-founding team.
Casey Caruso, an investment partner at investment firm Paradigm, added: “We believe Rain is a crucial piece of the puzzle for bringing the Middle East deeper into the new crypto economy. Their emphasis on supporting and educating those new to crypto alongside strong banking and regulatory relationships has helped them build a service people trust. This is just the beginning for Rain, and we’re honored to support their growth.”
Earlier in December, the Central Bank of Bahrain (CBB) made an in-principal decision to grant Binance its authorization to establish a crypto-asset business, paving the way for it to begin operations within the country.
The world’s largest cryptocurrency exchange received the licence after reportedly meeting all of the operational, technical, and security requirements outlined by the CBB. An “in-principle” decision, however, is the first stage of the full authorization process whereby the applicant needs to satisfy the CBB on one or more requirements in order to obtain a license.