Sydney fintech CryptoSpend is looking to raise $5 million in a Series A as it sets its sights on expansion into Asia and New Zealand.
CryptoSpend launched the first Australian native crypto Visa card in late 2021, which allows users to spend their crypto like cash.
Its existing backers include fintech veteran Andrew Porter and the business is seeking backers at a valuation of between $30 million and $50 million.
The fintech emerged from the UTS Startups hub, where cofounders Andrew Grech and Richard Voice met and set out to make crypto a mass market option for consumers.
Its app lets people pay bills, send crypto or cash it out to Aussie dollars. The CryptoSpend now has 17,000 active customers and the business is focused on international expansion in 2023, alongside adding at least eight new members to the team.
Grech, the CEO, said CryptoSpend performed strongly despite a range of issues in the sector over the past 12 months, including several notable exchange collapses.
“Despite the downturn in the sector experienced throughout 2022, we have been able to achieve massive growth – highlighting how the adoption of people using their crypto to spend has continued to become more and more popular,” he said.
The company also hopes to move into new offices in George Street, in Sydney’s CBD, later this year, as well as ramp up its product offerings to include a web-based platform, more reward programs and the onboarding of more networks and tokens, building on the existing rewards partnership with Ripple.
Grech said they have a broad range of customers from those using their Cryptospend card to tech-savvy crypto traders who use our app regularly to buy and spend their preferred popular crypto.”
Voice, the company’s chief operating officer, said they’ve noticed a shift in crypto purchases to more mundane products.
“We have seen more and more Australians using crypto for groceries and online shopping, as well as entertainment like cinema tickets as spending habits continue to evolve among our customers. We have witnessed a shift from luxury items which were so popular in the past, to everyday items,” he said.
“We plan to provide these same opportunities in markets like New Zealand and parts of Asia in 2023, as crypto continues to be a currency of choice to trade and spend amongst new and old users.”