Moonpay, a cryptocurrency payments service provider, has raised $555 million during its first funding round. Led by Tiger Global Management, this series A funding round propelled the valuation of the company to $3.4 billion, which will be used for expansion endeavors.
The fiat-to-crypto ramp that Moonpay provides is key to several hundred wallets and services for onboarding users with fiat currency.
Moonpay Snags $3.4 Billion Valuation
Moonpay, a startup that specializes in processing payments to purchase cryptocurrencies, has raised $555 million in its first financing round. The series A financing round was led by Tiger Global Management and Coatue with participation from Blossom Capital, Thrive Capital, Paradigm, and NEA. With this round, the valuation of the company reached $3.4 billion.
John Curtius, a partner at Tiger Global, stated:
We spoke to many of the company’s customers during diligence who highlighted Moonpay’s compelling user experience and expressed conviction in the company’s market leadership. Moonpay has already established itself as an iconic company as it better enables the world to participate in the crypto economy.
Expansion Plans and Functionality
With these funds, Moonpay will reportedly start an expansion phase, investing in more developers for its team and planning to add more functions for its platform. The focus of the company is a suite of tools for customers. For cryptocurrency exchanges and wallets to provide fiat on-ramping services, they must comply with a series of rules that include Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Moonpay claims to help take the hassle out of this process by providing a third-party solution so companies can focus on business while it takes care of KYC, payment processing, crypto liquidity and delivery, fraud prevention, regulatory licenses, ecosystem identity verification, and custom checkout flows.
Matt Huang, Paradigm co-founder stated:
Crypto is growing rapidly, but bringing aboard the next billion people requires services that make it even easier to access. MoonPay has built a simple and secure way for people globally to participate in this new economy.