Hong Kong Fintech Startup Reap Raises $40 Million For Web3 Payments

Reap, a digital payment company based in Hong Kong, has netted $40 million in a funding round aimed at developing infrastructure to help facilitate payments between Web3 projects and traditional businesses.

The financing is led by Silicon Valley-based Acorn Pacific Ventures, U.S. financial services firm Arcadia Funds and Hong Kong digital asset manager HashKey Capital, Reap said in a statement on Thursday. Other investors who participated in the round include Hong Kong fintech firm Payment Asia, as well as U.S. venture capital firms Hustle Fund and Fresco Capital, among others.

Reap said the proceeds will be used to set up regional hubs throughout Asia, North American and Europe, and double its team by the end of next year. Meanwhile, the company will continue to build Web3 infrastructure in collaboration with cryptocurrency firms to help provide them access to traditional merchants and physical services. The infrastructure is expected to launch as early as January.

“We want to build software and tools to enable more traditional businesses to get to payment digitalization faster,” says Daren Guo, cofounder of Reap. “At the same time, we want to enable access and connectivity for Web3 projects to ensure that they can continue to innovate and bring a lot of their ideas and creativity to apply for some of these more traditional companies.”

Last November, Reap rolled out a corporate credit card with Visa that enables businesses to manage their expenses through an online platform. Since then, the startup has added new features to allow blockchain and crypto companies to repay credit card balance with stablecoins.

Its services have attracted the likes of leading crypto players including billionaire Changpeng Zhao’s Binance, blockchain gaming giant Animoca Brands, crypto financial services firm Amber Group and others. Clients from the traditional business space include Taiwanese computer maker Acer and Pickupp, a Hong Kong-based logistics startup backed by Swire Properties.

The crypto repayment feature is currently still undergoing trials, says Guo, adding that he hopes to expand the scope of digital assets the credit card covers going forward. “We’ve always wanted to find a bridge to allow a little bit more fluid bilateral movement between the Web2 and Web3 world,” he says. “To us, the best way to be able to bridge that gap currently is through a payment method, like a Visa corporate credit card that’s accessible on a global basis.”

Established in 2018, Reap provides digital financial services for businesses that range from online payments to expense management. The company has raised $46 million in total funding since then. Guo says the company is open to more funding that would allow it to expand its services in areas such as payroll and procurement.

Reap said it has doubled its revenue over the past year, and has built a customer base of more than 20,000 users. The company currently has a team of more than 40 staff across Hong Kong, Singapore, Vietnam, Japan, Canada, Australia, and Malaysia.