Digital wallet fintech Zumo has raised nearly £1 million within two days in a crowdfunding appeal paving the way for a series A funding round later this year.
The Edinburgh business, which recently launched a pounds into cryptocurrency exchange function within its app for everyday users, reached 97% of its £1.1 million target on Seedrs.
The appeal is offering a total of 9.71% equity in the company, valuing it at £10.5 million only months after its flagship product was launched. Zumo said the equity offer would remain open to investors after the target has been reached.
Zumo says it aims to make it easier for consumers to trade in and store cryptocurrencies such as Bitcoin and Ether securely in a blockchain. They can switch them instantly into traditional currencies including pounds and euros without using a broker.
Its exchange function powered by Modulr enables users to use Bitcoin from their account for purchases as small as a coffee for a fee rate of 0.5%. Payments are made by phone but the firm plans to launch a debit card.
Zumo founder Nick Jones said: “We are so excited to hit the red button on our first crowdfunding campaign with Seedrs.
“It’s the perfect example of what we set out to do with Zumo – sharing the benefits of investing in cryptocurrencies with everyone in our bid to create a better, more equal global financial system.”
Zumo’s crowdfunding comes after a recent £500,000 investment from Ilya Fund, an institutional investor registered in the Cayman Islands and managed by Bermuda-based Sovereign Asset Management Ltd.
. In May, a seed funding round raised £1.1 million with backing from Coldplay bass player Guy Berryman, Murray Capital and the Scottish Investment Bank. Berryman also took part in a round in 2018 with tech entrepreneur Jon Claydon, contributing £1.5 million.