Qiro Finance Secures $1.2M in Pre-Seed Funding to Bridge Credit Gap in Emerging Markets
- ByStartupStory | June 13, 2024
Qiro Finance, a pioneering decentralized finance (DeFi) firm founded by Akshay Poshatwar and Nishikant Bahalkar, has successfully raised $1.2 million in a pre-seed funding round aimed at revolutionizing access to credit in emerging markets. The company, headquartered in Singapore, aims to address the significant credit gap prevalent in regions like Southeast Asia by leveraging blockchain technology and stablecoin frameworks.
“We are excited about the immense potential to transform the private credit landscape,” remarked Akshay Poshatwar, CEO and Co-founder of Qiro Finance. “Our mission is to empower fintech asset originators across Southeast Asia and beyond, fostering a more transparent and efficient credit ecosystem.”
Qiro Finance’s initiative comes amidst a stark imbalance in global private lending, with the APAC region holding a mere 21% share compared to the dominant 67% in the US. This disparity underscores the urgent need for alternative financing solutions tailored to emerging market dynamics.
The funding round was led by Alliance, a prominent web3 accelerator, alongside contributions from notable investors including Druid Ventures, Escape Velocity (EV3), Trident Digital, and CMT Digital. The support highlights growing investor interest in decentralized credit protocols and real-world asset (RWA) tokenization.
“Real World Assets (RWAs) are gaining traction as traditional firms explore new avenues in crypto financing,” noted Imran Khan, Founder of Alliance. “Qiro Finance is well-positioned to facilitate global access to private credit through innovative RWA-backed solutions.”
Qiro Finance plans to utilize the funding to further develop its decentralized credit protocol, enhancing capabilities for tokenized RWA-backed credit applications. “Our goal is to establish robust credit data infrastructure that addresses challenges such as adverse selection and credit defaults in on-chain transactions,” explained Nishikant Bahalkar, CPO and Co-founder of Qiro Finance.
Chris Pizzo, Co-Founder and General Partner at Druid Ventures, expressed optimism about Qiro’s potential impact: “Qiro has the opportunity to set the standard for credit data infrastructure, offering scalability and rigorous risk management.”
In addition to the funding, Qiro Finance secured a 100,000 MATIC grant from Polygon and a $50,000 development grant from the Aptos Foundation, underscoring support from leading blockchain ecosystems.
Looking ahead, Qiro Finance plans to expand its ecosystem and prepare for a mainnet launch later this year. “We envision a future where DeFi and blockchain technology enable universal access to credit,” affirmed Akshay Poshatwar. “Our journey begins by empowering fintech innovators in Southeast Asia, with ambitions to extend our impact across diverse emerging markets.”
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