SingX, a Singapore-based online remittance startup has raised $4.5 million in a pre-Series A round, led by senior bankers and high net worth individuals from Singapore and Hong Kong.
The newly raised funding will be used by the company to scale up customer acquisitions in Singapore, increase the number of payment corridors, and ramp up its platform development.
The company will also use the financing to expand its services to Hong Kong, Malaysia and Australia, with Malaysia being a particular focus for the company.
In a press statement, the company claims that there are currently 350,000 Malaysians in Singapore who transfer money back home to pay mortgages, bills, family and other expenses. Thus, the primary focus is the Malaysian market.
SingX, which is licensed by Singapore’s central bank Monetary Authority of Singapore (MAS), first launched its fund transfer service in India, back in January this year. It is led by CEO and co-founder, Atul Garg, who is a former American Express banker.
Like many digital remittance services, SingX’s value proposition to consumers is that it bypasses banks and therefore the series is comparatively cheaper. Remittance via banks and other traditional financial institutions tend to incur high cable charges, commissions, and other FX conversion rates.
SingX is going after a market segment who have more leverage and are savvier financially. It is targeting white collar workers and SMEs as opposed to blue collar migrant workers.
The company says that it can give customers added peace of mind by guaranteeing their money is kept in a segregated client account, in accordance with its status as a regulated payment services provider licensed by the Monetary Authority of Singapore.
It now offers online remittances from Singapore to Hong Kong, India, and Malaysia. Based on its current monthly run rate, the platform has a projected annualized run rate of $100 million.