Singapore-based digital trade finance network Contour has announced that Japan’s TIS INTEC Group has invested in the company.
Other details of the deal haven’t been undisclosed. However, a DealStreetAsia report said several regional and global trade banks, including Citi Ventures and Bangkok Bank, also participated in the Series A extension round, pegging the amount at US$4.9 million.
Also read: How to create a new normal for trade finance with blockchain
This round follows Contour’s previous US$13.41 million Series A round with participation from Japan’s Sumitomo Mitsui Banking Corporation (SMBC), Taiwan’s CTBC, the UK’s HSBC, Bangkok Bank, France’s BNP Paribas and Sweden’s SEB.
In a statement issued on December 13, Contour said the Series A+ financing would support its further adoption of a network covering 13 banks in 25 countries. The startup also has plans to grow its Singapore-based innovation lab to provide other trade finance product offerings beyond the current digitised Letter of Credit (LC) service.
Contour intends to double its in-house development team next year to assist this expansion, besides growing the global talent pool.
“With this investment, we move ever-closer to realise our vision of becoming the new global standard for trade finance by simplifying and removing barriers in the trade ecosystem, making the industry economically, environmentally and socially sustainable,” said Contour CEO Carl Wegner.
Founded in 2020, Contour applies enterprise blockchain technology to unite buyers, suppliers and banks on a decentralised digital trade finance platform.
Also read: Banks and fintech: An arranged marriage built on trust, but does it last long?
Acquiring LCs is often perceived as time-consuming due to heavy paperwork, high administrative costs, inefficiencies, and barriers to financing. Contour’s primary purpose is to simplify and digitise the management of the LC processes. It helps reduce the paper-based documents involved in trade transactions, significantly shortening the settlement time.
Japan is reportedly one of Contour’s critical markets to strengthen its foothold due to its large trade volumes in sectors, such as commodities, large equipment and automotive — all of which rely heavily on trade finance products.
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