Bitso Raises $250M at $2.2B Valuation - Backed by Tiger Global

Bitso Secures $250 Million in Series C Funding

Bitso, a crypto exchange operating with regulatory compliance in Latin America, has recently announced the successful completion of a $250 million Series C funding round.

This investment has resulted in a company valuation of $2.2 billion. The funding round was jointly led by Tiger Global and Coatue.

Significant Investment and Regional Impact

The round also saw participation from Paradigm, BOND & Valor Capital Group, alongside existing investors including QED, Pantera Capital, and Kaszek.

This news is noteworthy for several reasons. Notably, it follows a $62 million Series B raise just four months prior.

Bitso asserts that this funding establishes it as the most valuable crypto platform within Latin America. Furthermore, it positions the company among the region’s leading fintechs.

Growth and User Adoption

In 2020 alone, Bitso processed over $1.2 billion in international payments, encompassing remittances and inter-company transactions.

The company has also surpassed 2 million users, demonstrating the increasing integration of crypto into everyday financial activities in the region.

Demand for Crypto Services

Bitso attributes the rising demand for crypto assets and related financial products to both individual and business users. The company aims to be the most secure, transparent, and fully compliant platform in Latin America.

Bitso distinguishes itself as the sole provider in the region offering crypto-insurance for client funds.

Company Progress and Future Plans

According to Bitso co-founder and CEO Daniel Vogel, the company acquired its first million users in six years.

However, it has since reached 2 million users in less than ten months. Assets on the platform have more than doubled in the last five months, and first-quarter 2021 transaction volume exceeded all of 2020’s volume.

Founded in January 2014, Bitso began acquiring customers in April of the same year.

Mission and Vision

Bitso’s core mission is to develop next-generation, borderless financial services for both consumers and businesses.

The company believes that cryptocurrencies represent the future of finance and is dedicated to making that future accessible today.

Bitso provides products and services enabling individuals and businesses to integrate crypto into their daily financial routines.

Expansion and New Products

Bitso’s product offerings are designed to meet the needs of customers in Mexico, Argentina, and Brazil, where it recently launched retail operations.

The newly acquired capital will be used to expand capabilities, enhance product offerings, and extend operations to other Latin American countries.

Bitso was authorized to participate in Colombia’s Sandbox and crypto pilot program by the Financial Superintendence of Colombia in January.

Upcoming Innovations

Planned product launches include a crypto derivatives platform and interest-bearing accounts for crypto holdings.

Daniel Vogel emphasized that a significant amount of traditional financial infrastructure in Latin America is being replaced by crypto, and Bitso intends to accelerate this trend.

Investor Confidence

Investors are optimistic about Bitso’s potential for growth and innovation.

Nigel Morris, co-founder and managing partner of QED Investors, previously considered himself skeptical of crypto.

Shifting Perspectives

However, he now recognizes the expanded use cases beyond speculative trading and the potential to integrate crypto with conventional banking products.

QED believes Bitso is successfully making crypto useful and demystifying it for a wider audience.

Morris stated that Bitso’s mission is to make crypto accessible and that the company is well-positioned to provide lower-cost, frictionless financial services to underserved populations.

Bitso is also learning from the experiences of the crypto market in the U.S. and globally, avoiding past mistakes and adapting to the evolving regulatory landscape.

Strategic Advantages

Scott Shleifer, Partner at Tiger Global, expressed excitement about partnering with Bitso and believes the company has the right team and platform to capture market share in the growing Latin American market.

Founded in 2014, Bitso currently employs over 300 people across 25 countries, a significant increase from 116 employees last year.

Growth in Brazil is particularly rapid, with the company planning to triple its Brazilian workforce by the end of the year.