Singapore’s Thunes nets $60m to expand in Africa, Asia, Latin America

Thunes, a Singapore-based fintech startup, announced that it has raised US$60 million in a series B funding round led by Africa-focused investment firm Helios Investment Partners.

Thunes CEO Peter De Caluwe/ Photo credit: Thunes

Checkout.com as well as existing investors GGV Capital and Future Shape also participated in the round. The funding comes after the company secured US$10 million in a series A financing led by GGV Capital in May last year.

Fintech company TransferTo spun off Thunes last year to cover its cross-border payments business, which was launched in 2016.

What problem is it solving? “The existing payments ecosystems are fragmented and complex, especially in emerging markets,” the company told Tech in Asia.

While consumers have choices when it comes to different payment methods like e-wallets, mobile money accounts, and bank accounts, these methods lack interoperability, resulting in “slower, more costly, and at times unreliable ways of moving money.”

To fill these connectivity gaps, Thunes connects mobile wallet providers, banks, technology companies, and money transfer operators through its cloud-based application programming interface.

What’s the opportunity? According to Thunes’ CEO Peter De Caluwe, the projected size of emerging markets for cross-border payments is around US$45 trillion.

The company charges a transaction fee that’s based on on the destination country, as well as a mark-up on the exchange rate if a currency exchange fee is involved.

How much traction has it gotten? With over 400 partners, it operates in more than 100 countries and 60 currencies. It has regional offices in London, Shanghai, New York, Dubai, and Nairobi.

With an 80% increase in transaction volume for Q2 2020, Thunes aims to double its annual transaction volume through the expansion of its network.

What are its future plans? With the new funds, the company plans to continue developing its global network and accelerate its expansion and growth in Africa, Asia, and Latin America. It will expand its team and product offering, including business payments and collections from emerging markets, according to a statement.