(L-R) Transfez co-founders Edo Windratno and Bondan Herumurti
Transfez, a B2C cross-border remittance startup based in Indonesia, announced today that it has raised an undisclosed amount of seed capital in a round co-led by East Ventures and Beenext.
The fresh funds will be used for product development and market penetration, as well as to extend its service in the B2B payments sector.
Launched last year, Transfez allows users to transfer money across 50 countries in 26 currencies at a cost that is “up to 10 times cheaper than banks”, with a fully digital process and real-time settlement.
The startup, regulated by Indonesia’s central bank BI, claims that during the pandemic, it experienced 30x growth in the number of transactions processed. It is now on track to process US$105 million in total transaction value this year.
“Transfez seeks to further build unique solutions and products tailored to the Asia market, specifically in the US$370 billion Indonesia cross-border payment sector,” said Bondan Herumurti, co-founder and CTO of Transfez.
“Remittance is a critical part of cross border financial services: it is used by migrant workers to send money securely to their families back home, help parents settle school fees for their children, or SMEs to purchase inventory from global suppliers.
However, this industry has long been linked to high fees, time-consuming and lack of transparency. We believe that Transfez’s team has the capability to serve millions of Indonesians with more cost-effective, seamless, and secured ways to digitally send and receive money around the world,” Melisa Irene, Partner of East Ventures said.
Southeast Asia’s cross-border payments market is crowded, with players like NIUM and Transferwise dominating.
A report by McKinsey & Company also states that Asia is the largest contributor to global payments revenue, generating over US$900 billion in 2019, nearly half the global total.
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Image Credit: Transfez
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