Economy Fintech & e-commerce Startups Travel & tourism Venture

Forex Comes Into Focus As More Currency-Related Startups Raise Funding

Illustration of eyeglasses with $ in lens

Most of us get through each day without noticing how our national currency is faring on global markets.

Others, however, have no such luxury.

Whether it’s manufacturers with cross-border supply chains, retailers pricing imported goods, or workers collecting pay in volatile home currencies, quite a few players in the global economy are instantly affected by exchange-rate fluctuations. Unfortunately, it’s also something over which they have little to no control.

Founders and investors have taken note. In recent quarters, a growing cohort of startups have raised funding for offerings aimed at reducing some of the business and personal finance stressors around currency volatility.

Using , we put together a list of 16 such companies that raised funding in roughly the past year-and-a-half. Offerings include hedging instruments, tools to simplify  cross-border transactions, apps for travelers, and foreign currency accounts for residents of countries with high inflation.

It’s a well-funded assortment. Collectively, the companies on our list, shown below, have raised nearly $900 million, with a good chunk of investment coming in the past few months.

Just this week, the latest big funding announcement came from Tel Aviv-based , developer of a tool for software and trade platforms to reduce risks and disruptions tied to currency volatility. The formerly stealth mode company this week that it has raised more than $50 million, including a Series A led by .

We’ve seen several other good-sized rounds in the past couple months, including:

  • , a Toronto-based startup offering accounts in multiple currencies that boasts it has “the cheapest FX rates in Canada,” picked up $21.5 million in a Series A round last week led by .
  • , a provider of dollar, sterling or euro accounts to people from high inflation countries, secured $18 million in a January Series A financing led by .
  • , a platform for African businesses and gig economy workers to receive cross-border payments, closed on an $11 million February Series A led by .
  • , a London- and Geneva-based provider of a platform for businesses to transfer, hold and exchange over 100 currencies with multicurrency and local currency accounts, secured $15 million in debt funding from in January, a few months after landing a $31 million strategic investment from .

Meanwhile, the largest funding recipient on our list, Singapore-based , a provider of foreign exchange and payment tools for online businesses, raised a $100 million Series E in November, bringing total investment to $346 million.

Recent funding coincides with volatility

The most recent funding moves come amid a period of heightened volatility for a number of closely watched currency pairings. Driving factors include new U.S. tariffs, inflation concerns, emerging signs of economic slowdown, and interest rate in major economies.

Lately, dollar weakening has been a standout trend, after strong performance in the latter months of last year. The , which measures the value of the dollar relative to a basket of foreign currencies from six trading partners, has declined over 3% in the past five days.

Funded startups, however, are less focused on short-term FX gyrations, and more on how people and businesses can function in a globally connected economy where currency volatility is the norm rather than the exception.

Related Pro list:

Illustration:

Stay up to date with recent funding rounds, acquisitions, and more with the Daily.

67.1K Followers

CTA

Discover and act on private market opportunities with predictive company intelligence.

Copy link