Singapore-based Bitcoin exchange startup BitX has reportedly bagged a whopping $4 million (USD) in Series A funding from online e-commerce payment gateway PayU. PayU is a subsidiary of the multinational media and internet services giant Naspers.
Founded in 2013, the Bitcoin exchange recently expanded into the Nigerian market offerings its mobile Bitcoin wallet for iOS and Android, the BitX API in addition to the exchange services.
The reason why the startup focuses on emerging markets is because of their high-growth potential. BitX CEO Marcus Swanepoel said,
“We’ve been seeing very strong growth across the markets we operate in, and this investment will allow us to both accelerate this growth and extend our footprint to more markets.” He adds that “In Naspers we have a truly global partner with unrivalled capabilities in high growth markets, and we’re very excited to work together in building out our global platform”.
The Bitcoin exchange currently operates in emerging economies such as Indonesia, Malaysia, Philippines, South Africa, Kenya, and has recently added Nigeria. Very recently, the company reported a boost in Bitcoin usage in the Indonesian market.
The deal will also bring about a management shakeup at BitX. PayU’s Chief Product Officer James Caviness will join the BitX Board of Directors following the funding. Caviness believes that the cryptocurrencies hold a lot of promise for the future.
“We see a bright future for cryptocurrency across a number of industry verticals, and with BitX’s strong management team and solid track record, look forward to leveraging Naspers’ global platform and local knowledge to help them capitalize on these opportunities.”
The latest capital infusion will lead to further expansion of the BitX business. The company had in 2014 raised US$800,000 in seed funding and has investments from the founder of the Digital Currency Group Barry Silbert.