Quick take:
- The announcement comes following Mesh’s $22 million Series A round announced in September 2023.
- The company has now raised a total of $38.5 million including PayPal’s latest bet.
- Mesh is developing a solution that allows users to move funds between crypto exchanges, wallets and financial apps within its platform.
Crypto payments solution provider Mesh has received $6.5 million from PayPal Ventures. The online payments giant invested $5 million in PYUSD stablecoins and an additional $1.5 million, in cash according to an announcement on Monday.
Founded by cybersecurity veterans who sold their first venture to LogMeIn, Mesh offers a crypto payments solution that allows users to move funds between crypto exchanges, wallets and financial apps within its platform.
This is particularly important because it doesn’t require users to cut and paste a long string of characters to receive or send crypto, Mesh co-founder and CEO Bam Azizi told Fortune, a factor that he described as a poor security practice. Mesh uses an in-app menu to move funds across a variety of platforms.
Bam Azizi, Co-Founder and CEO of Mesh said in a statement: “We’re thrilled to have the backing of PayPal Ventures as we execute against our vision of becoming the connection layer for a critical mass of crypto platforms and financial service providers. PayPal has an incredible track record of moving the payments industry forward, so it’s no surprise they are at the forefront of stablecoin innovation and share our vision for the future of the industry.”
And according to Azizi, hundreds of companies, which he said can’t disclose yet, are already integrating its services. The company is currently generating more than $1 million, but it’s yet to break even, Azizi said it could easily be profitable if he chose to.
Mesh plans to use the fresh capital to accelerate the development of its platform as more companies continue to integrate its services.
Commenting on his company’s investment in Mesh, Amman Bhasin of PayPal Ventures said in a statement: “We are confident that this investment will fuel Mesh’s growth and contribute significantly to the advancement of embedded finance and native stablecoins.”
Launched in August last year, the PYUSD stablecoin saw its market cap grow by more than 70% between mid-December 2023 and mid-January 2024, to about $300 million. PayPal is trying to increase its market share in a $135 billion crypto segment currently dominated by Tether (USDT).
This investment comes following Mesh’s $22 million Series A round announced in September 2023. The company has now raised a total of $38.5 million including the PYUSD stablecoins it received from PayPal.
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