Singapore-based RootAnt, the company behind the banco financial platform, has raised US$4.5 million in its Series A2 funding round anchored by SBI Venture Capital, according to a DealstreetAsia report.
According to an ACRA filing, SBI Venture Capital invested US$2 million in the funding round, followed by the participation of Hua An Investments Ltd and Sumitomo Mitsui Banking Corporation. The two companies invested US$1.1 million and US$1 million in the fintech startup, respectively.
The funding round also included the participation of Sixtwo Capital, CMPL Angel Seed Fund, and R3 Limited.
It followed a US$1.5 million seed funding round that RootAnt announced in 2020. It was led by Chinese investment firm Linear Capital and co-investor KZM & Company Group.
Also Read: How digital banking is driving financial inclusion in SEA
In addition to that, SBI Holdings have also been reported to have invested in RootAnt for a 4.8 per cent stake.
RootAnt provides a Banking-as-a-Service (BaaS) platform that connects enterprises and financial institutions with new digital financial products.
Its banco platform provides new digital financial products that include supply chain finance and green finance that are integrated with alternative data from enterprise systems, customs, logistics providers, and government databases. It utilises AI and blockchain technologies in its implementation.
It is one of the latest companies in the Southeast Asian region to seize the opportunity provided by the rise of digital bank services.
As detailed in a contributed post to e27 by Srihari Sikhakollu, CEO at eRemit Singapore, some digital banks in other regions have been unsuccessful due to poor funding strategies, focusing on the wrong demographic or failing to inspire customer trust and loyalty.
However, digital banks who have successfully leveraged technology have reported saving 20 to 30 per cent more on their per-account operation costs compared to traditional banks.
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