SME invoice financing startup Qupital secures $2 million seed funding
18 May 2017 | 4940 views | 0
Hong Kong online invoice discounting exchange Qupital has secured $2 million in seed funding.
The round was led by MindWorks Ventures and Alibaba Entrepreneurs Fund, with co-investment from DRL Capital, Aria Group and other investors.
Founded in March 2016 by two University undergraduates, Qupital aims to address Asia's reported $200 billion SME financing gap by allowing clients to turn their accounts receivables into cash. The accounts receivables market in China is estimated to be worth more than $3 trillion annually.
"Qupital's vision is to help inject liquidity into the market, reducing SMEs cost of financing and enabling professional investors access to an entirely new asset class of accounts receivables", says co-founder Winston Wong. "At the same time, we are excited about the opportunity to work with Alibaba to reach a brand-new audience of businesses, both in Hong Kong and regionally."
He says Qupital currently serves a range of SMEs in the export, manufacturing, and distribution sectors.
"Qupital is a textbook example of how internet and technology helps to optimise a traditional industry," says David Chang, managing partner at MindWorks Ventures, a Hong Kong-based regional venture capital firm. "There is a large financing gap in Asia for underserved SMEs, and we look forward to Qupital becoming the dominant player for this market."