Chinese Fintech Startup XTransfer Raises Series C2

XTransfer, a Chinese fintech startup that offers cross-border financial services and risk management solutions, has
closed a Series C2 round of financing led by Hong Kong-based investment firm Lavender Hill Capital Partners
(LHCP).

 Existing shareholders also participated in the deal, said the startup in a statement. Financial terms of the new round
were not disclosed.

 Shanghai-based XTransfer partners with multinational banks and financial institutions to develop a global network
that provides Chinese micro, small and medium-sized exporters with AI-enabled simplified and lower-cost trade
transactions. The startup currently serves over 100,000 exporters in China with solutions covering multi-currency
cash management, cross-border financial risk management, foreign trade collection, and beyond.

 The new financing came as the prolonged COVID-19 pandemic fueled the exponential growth of the online
economy, including cross-border e-commerce businesses, propelling demand for the likes of XTransfer’s fintech
products.

 “The pandemic has accelerated a growing trend of exporters and importers using online channels to proceed cross-
border transactions. The model of business-to-business (B2B) e-commerce is still at its nascent stage, and a mega-
sized e-commerce platform that integrates various [goods] information, logistics, and capital flows is yet to come,”
said Bill Deng Guobiao, founder and CEO of XTransfer, in the statement.

 Founded in May 2017, XTransfer has set up branches in Chinese major foreign trade cities like Hong Kong and
Shenzhen, as well as overseas markets including Britain, the UK, Canada, Japan, Australia, and Singapore.

 The firm will use the fresh capital to fund the continued iteration of anti-money laundering solutions and the
construction of its AI, big data-enabled risk management system. It plans to further enhance its products’ efficiency
and accuracy in collecting and verifying transaction information.

 Three months earlier, XTransfer announced the completion of a Series C1 round led by Australia’s venture capital
(VC) firm Telstra Ventures, as its first attempt to rope in investors outside of mainland China to pave way for a
potential inroad into the global market.

 The firm’s earlier investors also include Hong Kong-based investment firm MindWorks Capital; Alibaba and Ant
Group-backed eWTP Capital; China-based 01VC; China Merchants Venture, an investment arm of state-owned
China Merchants Group; and Yunqi Partners, which mainly backs businesses targeting corporate clients, among
others.

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