Singapore-based fintech startup soCash has raised $6 million (Rs 41 crore at the current exchange rate) in its series B funding round, led by Japan-based automatic vending machine manufacturing company Glory.
Standard Chartered Bank's fintech investment arm SC Ventures and Silicon Valley-based early-stage venture capital firm Vertex Ventures also participated in the round, an official statement said.
The fresh funds will be used to grow its distribution network across Indonesia, Malaysia and Hong Kong, the statement added. The startup will also invest in building teams in all three markets.
“We started soCash to make cash circulation efficient,” Hari Sivan, co-founder and chief executive officer of soCash, said. “Our platform has now evolved to become the only network that converts neighbourhood shops into virtual branches. With the emergence of virtual banks and open banking, our network is well equipped to offer sales & distribution with flexibility and massive scale.”
Founded in 2016, soCash is a digital cash circulation platform connecting banks, retailers and individuals for cash and other banking services across the Asian markets. The startup allows bank customers to perform banking services like cash withdrawal and loan applications at shops via its mobile app. Users can scan a QR code at select shops and collect cash. Users can also earn rewards for these transactions.
“The combination of data, hardware and software lead to opportunities that help the society to meet its flexible payment needs,” Minoru Higashiyama, leader of the long-term vision project team at Glory Ltd, said. “As our long-term vision, Glory would like to make the cash society a better place by optimizing the physical and digital cash cycle. soCash is realizing this concept in the Asia-Pacific region and aligns perfectly with Glory's long-term vision.”
Alex Manson, global head at SC Ventures, said, the investment in soCash will give valuable insights into the usage and the future of cash without conventional costly channels like branch counters and ATMs.