XTransfer, a Chinese cross-border payment startup headed by a former Ant Group executive, is in advanced talks with Dan Sundheim’s D1 Capital Partners and other investors to raise capital at a pre-money valuation of $1 billion, more than triple its previous funding round in January, people familiar with the matter said. The funding would be a bet that China’s government will continue backing export-oriented businesses despite getting tough on domestic online financial services.
Even as China’s government is forcing a restructuring of financial tech giant Ant, fintech startups that align with Beijing’s policy goals of boosting foreign trade are expanding and attracting investors. XTransfer is also benefiting from investor enthusiasm for global fintech startups, driving a surge in valuations, as investors flock to companies they see benefiting from an acceleration of online commerce.
XTransfer helps small Chinese exporters process payments from their overseas corporate clients. Demand for cross-border payments is rising as new Chinese brands like online fashion retailer Shein and other direct-to-consumer exporters enjoy a robust recovery in global appetite for Chinese-made goods.
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