High fees and friction are common characteristics of cross-border transactions. This has drawn fintech players who are trying to address these pain points.
While some businesses, like Wise and YouTrip, focus primarily on consumers traveling abroad, others want to take advantage of higher volume business-to-business transactions.
This latter group includes Sunrate. The fintech company is headquartered in Singapore and has raised an undisclosed series D2 round that was led by Peak XV Partners (previously Sequoia Capital India and Southeast Asia). Additionally, the business disclosed a series D1 round led by Prosperity7 Ventures last month.
Now in extension to the D round, Sunrate raised new funding. Prosperity7 Ventures, SoftBank Ventures Asia (SoftBank Ventures Korea) were the other investors.
Sunrate offers payment-related goods and services. It was established in 2016 by Paul Meng, Joshua Bao, and Michael Dong. These include treasury management, commercial card issuance, global collection, and international payments.
In summary, businesses can use Sunrate to conduct transactions in more than 100 different currencies and more than 150 different countries. Services for card settlement and collection are also available.
Companies can manage their assets, liquidity, and liabilities with the help of TreasuryOS and RiskOS from Sunrate.
The Monetary Authority of Singapore recently granted the startup a license for Capital Markets Services. Additionally, it now has the ability to offer account issuance, domestic money transfers, international money transfers, merchant acquisition, and e-money issuance thanks to its Major Payment Institution license.
It intends to use the new funding to expand its staff and intensify its efforts to penetrate international markets, particularly in developing ones like Southeast Asia and India.
By 2030, the B2B cross-border payments market will be worth US $56 trillion, growing at a compound annual growth rate of 43%.
