FFH invests in InstaReM, a digital account to account cross border payments company focused on Asia.
16 March 2016
InstaReM, a digital account to account cross border payments company focused on Asia, has just received a USD 5m investment led by Vertex Ventures, with participation from Fullerton Financial Holdings (FFH), and Global Founders Capital (GFC). InstaReM will use the investment for licensing, geographic expansion, scaling the product and technical teams and marketing. Prajit Nanu, co-founder of InstaReM says: “InstaReM’s fast, compliant and low cost money transfer solution has propelled it from an unknown brand to one of the corridor leaders in Australia. Our aim is to be the fastest money transfer operator to process USD 1 billion. We are extremely excited to have Vertex and FFH onboard and continue to receive support from GFC who invested in us when we were two guys and a powerpoint.”
Currently the average transaction size on the InstaReM platform is USD 1,800 and transactions are processed in a few hours compared to 24 to 48 hours with other Money Transfer operators. Unlike other operators who charge a transaction fee and fx spread, InstaReM charges a percentage of sending amount which is approximately less than 1%. InstaReM currently serves individuals, small and medium sized businesses and financial institutions.
In less than 12 months of operations, InstaReM manages about 2% of all remittance from Australia to India and is growing exponentially in other corridors. InstaReM is currently licensed in Australia, Hong Kong and Canada and in process of applying for a license in Singapore, Malaysia, Japan, Luxembourg and some states in the US.
InstaReM’s quick rise and robust business model have particular appeal to Vertex Ventures. Chua Joo Hock, Managing Director at Vertex Ventures, says: “Trying to do a startup in the Fintech space is not easy, as you may need more finance background than technology to manoeuvre through the complicated industry. InstaReM not only develops a unique deep integration model with banks but also shows a very strong capability to execute, which are two important qualities that really excite us.”
Speaking about FFH’s investments, Niap Juan Loh, Head of Finance at FFH, commented:
“As an active operating investor in financial and related services across Asia and other emerging markets, FFH strives to stay ahead through its investments in market-leading innovation and creative financial solutions. In particular, our investment into InstaReM underlines our continued commitment in Fintech. We expect to bring shareholder value by sharing our expertise and creating synergies between InstaReM and our existing portfolio companies.”
Michael Bermingham, co-founder of InstaReM, added:
"Our robust proprietary technology presents the opportunity for small and mid-sized banks and payment providers a solution to expand their product offering into the remittance space.
InstaReM is lead by a senior management team which includes Blaine Fabi (APAC President), Mahesh Koirala (Global Financial controller), Amit Gupta (Head of Engineering and Ninad Bhate (Global Head of Operations).
InstaReM has offices in Sydney, Singapore, Mumbai and New Jersey. InstaReM currently offers its services to individuals, small and medium sized businesses and financial institutions. InstaReM has created a unique payment mesh in Asia which is being leveraged by financial institutions for micro cross border payments.
About Vertex Ventures
Vertex Ventures Southeast Asia & India invests in high-growth start-ups seeking their first round of institutional venture capital funding across Asia (excluding China), with a focus on Singapore, Southeast Asia and India, among other emerging hubs of innovation in this region. The current portfolio include Grab, Reebonz, Patsnap, TickledMedia, Paktor, SDiX, FirstCry, Yatra, Xpress Bees and Housejoy. For more information, visit www.vertexventures.com
About Fullerton Financial Holding
Fullerton Financial Holdings invests in and operates financial institutions in emerging markets. We create shareholder value by differentiating through great people, disciplined development and execution of unique business models that focus on the SME and mass market customer segments.
We are a wholly owned subsidiary of Temasek, an investment company based in Singapore. For more information, visit www.fullertonfinancial.com
About Global Founders Capital
Global Founders Capital (GFC) is a global venture capital fund that supports talented Internet entrepreneurs in all stages of development. The current portfolio includes Movinga, Naturebox, Dawanda, GetSafe, MarleySpoon and many other exciting companies. Global Founders Capital has been involved in numerous global success stories such as Facebook, LinkedIn and Trivago. More information is available from www.globalfounders.vc.