MoonPay, a payment service provider for the crypto industry, has announced that it has raised $555 million in its first-ever funding round which increases its valuation to $3.4 billion.
The funding round was led by Tiger Global and Coatue and involved other investors as well. The platform has said that it has over 7 million customers and has also processed over $2 billion in transactions over a period of 2 years since it was launched in 2019. It has been able to generate a lot of traction among the various crypto users and companies as they would be able to buy and sell cryptos using fiat currencies through the platform provided by MoonPay. By integrating this platform into their own businesses, many crypto companies would be able to give this option to their end-users which would then remove the need to look for centralised exchanges and other such services for buying cryptos using fiat.
John Curtius, a partner at Tiger Global, stated: “We spoke to many of the company’s customers during diligence who highlighted Moonpay’s compelling user experience and expressed conviction in the company’s market leadership. Moonpay has already established itself as an iconic company as it better enables the world to participate in the crypto economy.”
It is expected that MoonPay would be using this additional funds for rapid expansion by adding more services, features and also adding to their team size as well to get things into market much more quickly. This fiat on-ramping solution needs to be incorporated into exchanges and wallets so that the end users can use this but at the same time, the users would be required to submit their KYC documents as per the jurisdiction that they live in. This mimics the process that is followed by many crypto exchanges and by outsourcing this on-ramp and off-ramp solutions to a third party like MoonPay, they would be able to focus on their main product. This is what the platform is hoping to offer to the crypto exchanges and wallets and so far, it has been able to do a good job of it. With the crypto market picking up all around the world and with more mainstream users expected to be onboard by the industry in the coming months, the need for services offered by the platform would be much in demand which is likely why it has been able to generate such an interest among the investors.