SoCash, a Singaporean startup that converts shops and cafes into virtual bank branches, has raised $6 million in Series A Financing, led by Japanase cash automation company Glory, with participation from Standard Chartered's venture fund and SouthEast AsianVC Vintex Ventures.
SoCash users can place a cash order via a mobile app and select a nearby merchant to collect the funds from, while the app deducts the selected amount from the customer’s account. Customers can also perform loan application at shops via the app.
The firm's technology plugs directly into bank back-ends via an API to automate the correspondence. Customers include Singapore's top banks, Standard Chartered, ICBC, POSB and DBS and the cash disbursement network runs to 1400 locations, including retail chains like SPH Buzz, U Stars supermarket, iECON stores and 7-Eleven.
The startup says it will use the funds to expand into neighbouring markets in Indonesia, Malaysia and Hong Kong.
“We started soCash to make cash circulation efficient; our platform has now evolved to become the only network that converts neighbourhood shops into 'virtual branches'." says Hari Sivan, co-founder and CEO of soCash. “With the emergence of virtual banks and open banking, our network is well-equipped to offer sales and distribution with flexibility and massive scale.”