According to a blogpost by VALR, proceeds from the capital raised will be spent on exploring new products for the South African market. Products VALR intends to launch collateralized lending and derivative trading. Further, VALR is set to expand to other parts of the continent.
VALR raised the 57 million rand ($3.4 million) 100X (parent company of BitMEX) and 4Di Capital.
Arthur Hayes, CEO and Co-Founder, 100x Group, also said:
South Africa has an incredibly exciting and fast-growing cryptocurrency ecosystem, and we believe VALR is well-placed to capitalise on future growth of bitcoin trading. In VALR we’re backing not only a successful early stage business, but a management team with the ability to scale operations significantly.
VALR is backed by major investors, including Bittrex Inc., one of the biggest global crypto exchanges, and Michael Jordaan, the former CEO of FirstRand Ltd.’s First National Bank.