Amsterdam-based Fung, a crypto payments infrastructure startup, announced that it has raised $2.7M (approximately €2.54M) in a pre-Seed round of funding, according to Sifted.
As mentioned in a LinkedIn post by Maria Palma, General Partner at Kindred Capital VC, the investment was co-led by Global Founders Capital, Kingsway Capital, Kindred Capital, and Karatage.
The startup aims to become fully regulated by the Dutch Central Bank (DNB) for both fiat and crypto, setting up to be MiCA (Markets in Crypto Assets Regulation) ready.
What does Fung offer?
Launched in 2022 by Alex Schoonkind, Konstantin Indjov and Andrei Valeanu, Fung was developed with the goal of merging the crypto and fiat payment rails in order to give customers a seamless experience while also improving the security and dependability of existing solutions.
The existing payment technology consists of a patchwork of systems built on outdated infrastructure. The aim is to become the one-stop solution that helps businesses in the new economy grow and evolve, comply with legal requirements, and ensure business continuity.
Merchants will be able to accept crypto and fiat payment rails in a compliant manner, allowing them to satisfy their own statutory KYC/AML standards.
Fung says it will first target SME e-commerce enterprises who wish to take fiat and crypto payments at checkout as well as customisable payouts.
The startup will issue IBANs to merchants in order to provide a single solution for payments in fiat currencies.
Capital utilisation
The proceeds from this round will help Fung to expand its operations and its business reach. The startup also plans to hire 12 new team members.
Fung is not launched completely, but is offering early sandbox access on its website. Cardano payments, merchant back office, and reporting are now operational.
The company is in process of introducing Ethereum and fiat payments, with Solana payments, integrated checkouts, and customisable payments in various currencies to follow, as well as IBANs for retailers.
According to Sifted, Fung will start onboarding EU-based merchants first. It is currently reviewing local licensing laws so that it can expand into the UK, the rest of Europe, and LATAM and the US in future.
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