Shanghai – Jan 27, 2021 – XTransfer, China’s leading one-stop cross-border financial and risk management services provider, has completed its Series C2 round of funding for an undisclosed amount of money.
The latest round of financing was led by Lavender Hill Capital Partners（LHCP）, with participation also from existing investors.
Coming hot on the heels of the Series C1 round, which took place in last October, XTransfer’s new fundraising is expected to bolster its anti-money laundering (AML) and risk management capabilities.
The startup will use the proceeds from the latest round to continue building a big data and AI-driven intelligent risk management system, so as to enhance the accuracy and efficiency of information collection and verification per transaction.
Meanwhile, it also looks to go on a global hiring campaign to scout high-caliber talent.
Founded in May 2017, XTransfer is headquartered in Shanghai and has offices in Hong Kong, the United Kingdom, Canada, the United States, Japan, Australia and Singapore.
The coronavirus pandemic has changed the face of global trade. China’s small and medium-sized enterprises (SMEs) have been resilient and flexible enough to weather the hardships through a surge in Chinese-made exports across the world. In the realm of business-to-business (B2B) trade, exporters tend to be smaller and come from diverse backgrounds, causing cross-border payment to become more fragmented and higher in frequency. This new normal in global trade calls for a better cross-border payment infrastructure.
Through collaboration with top-tier international banks and financial institutions, XTransfer has established a multi-currency globally unified financial settlement network and provided a series of services. These include local collection and payment, FX exchange, reporting of income in countries with non-convertible currencies and so on.
XTransfer connects major global financial institutions and SMEs, helping the latter save significantly on international remittance and money exchange fees, among other value added services. To date it has served more than 100,000 SMEs from China.
Despite their growing percentage of China’s exports, SMEs face a tremendous challenge in cross-border risk control. XTransfer’s proprietary AML system consists of two key modules designed to conduct smart information insight and smart decision-making. These features allow the system to raise a red flag when it spots high-risk clients and transactions, ensuring a better user experience and platform safety.
Alice Yao, co-founder and chief risk officer of XTransfer, believes that “AML work related to cross-border trade, especially with respect to SMEs, is the most challenging.”
To respond to this challenge, “on the basis of fully implementing an AML compliance framework, XTransfer screens each deal in the context of related background and information. It employs big data and AI to build a data-driven, automated, Internet-enabled and intelligent risk management infrastructure,” says Yao. “With the accumulation of data sets, self-learning of the decision-making engine, and expert feedback, the efficiency of our AML work will grow continuously.”
Bill Deng, founder and chief executive officer of XTransfer, says that “the pandemic accelerated the pace for cross-border B2B exporters to embrace e-commerce. In this sphere, which is still fledgling, there remains to be a gigantic platform that combines information flow, logistics and money flow. XTransfer will evolve into the most instrumental infrastructure for cross-border B2B e-commerce.”
Xiaoyin Zhang, founding partner of Lavender Hill Capital Partners (LHCP), says that “the epidemic led to an explosion of online economy and was a driver for faster growth of global cross-border e-commerce. As a result, a larger number of Chinese SMEs are going global.”
“Secure, stable and compliant cross-border financial services are key not only to the interests of SMEs, but also have wide-ranging socio-economic repercussions. XTransfer’s team successfully showed that AI and big data technology are the most effective methods in relieving SMEs’ pain points in accessing cross-border banking services.”
XTransfer was founded in May 2017 by six ex-Ant Financial and Alibaba employees. XTransfer cooperates with banks from various countries to set up a globally unified B2B financial network and intelligent risk management system, and launches comprehensive solutions of various cross-border financial services, such as global account opening, foreign currency exchange, and foreign exchange declaration. XTransfer strives to remove the hurdle for small and medium-sized enterprises (SMEs) to enter the global market and improve their world-wide competitiveness.