Quick take:
- XLD Finance has announced a $13 million pre-Series A funding round led by Dragonfly Capital.
- The platform offers decentralised finance tools for emerging markets including Xspend, which lets users spend their GameFi tokens and stablecoins on utility bills.
- The round also attracted participation from Digital Currency Group (DCG), Circle, Advance AI, IDG Capital, Insignia Venture Partners and YGG, among others.
XLD Finance has completed a $13 million pre-Series A round led by Dragonfly Capital. The decentralised finance platform said it will use the funds to scale its product offering and expand the engineering team.
The platform offers DeFi tools to facilitate cross-border crypto transactions in emerging markets. One of its most popular tools is XSpend, which lets users spend their GameFi tokens and stablecoins on utility bills, mobile credits and other online purchases.
Other participants in the round included Circle, Digital Currency Group (DCG), IDG Capital, Insignia Venture Partners, Integra Partners, Morningstar Ventures, Sfermion, Shima Capital, Transcend Fund, Yield Guild Games (YGG), and YOLO Ventures, among others.
Since launching in June 2021, XLD Finance has managed to onboard users from the Philippines, Indonesia, Malaysia, Vietnam, India and Bangladesh.
From Dragonfly’s perspective, the investment is part of its strategy for expanding its presence in the Web3 space. The crypto-centred venture capital firm in April raised $650 million for its third fund. The firm is looking to scale its portfolio of Web3 projects including DeFi, the metaverse, NFTs and smart contracts.
Dragonfly Capital now has about $3 billion in assets under management and continues to back promising Web3 projects despite the crypto winter.
XLD Finance will be a unique addition to Dragonfly’s portfolio projects given the space it addresses in Web3. The company is looking to use its payment services, which include disbursements and crypto-fiat-onramps to onboard millions to Web3.
Commenting on the fundraising, XLD Finance Co-founder and Chief Executive Officer Ian Estrada said: “I want to see a future where anyone with a mobile phone or computer and internet access can use “bank-like” financial tools via their preferred DeFi protocol or exchange.”
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