Zynk Secures $5 Million to Enhance Cross-Border Fintech Infrastructure
Hyderabad-based fintech start-up Zynk has successfully raised $5 million in a funding round led by Hivemind Capital. The funding received participation from several global venture capital firms, including DAO Alliance, Coinbase Ventures, Transpose Platform, Polymorphic Capital, Tykhe Ventures, and Contribution Capital. This financial backing is intended to bolster its operations in providing robust cross-border payment solutions.
Expanding Partnerships and Compliance Framework
With this new capital, Zynk aims to broaden its partnerships and enhance its liquidity and compliance frameworks. Co-founder and CEO Prashanth Swaminathan stated, “Our focus is on expanding the country pairs we support for sending and receiving money while rethinking our compliance stack. We also intend to forge strategic alliances with larger customers.”
Innovative Approach to Cross-Border Transactions
Founded by Manish Bhatia, the former Chief Technology Officer (CTO) of Amazon Pay India, along with Abhishek Pitti and Swaminathan, Zynk is revolutionizing the business-to-business (B2B) transaction landscape. They enable instantaneous cross-border payments through partnerships with banks and fintech institutions. Rather than relying on traditional pre-financing models that require banks or fintechs to hold liquidity for these transactions, Zynk operates as a technology platform providing on-demand financial liquidity at the moment of transaction.
Just-in-Time Liquidity Model
Swaminathan elaborated, “We facilitate cross-border transactions instantly with integrated just-in-time liquidity. Payment companies are freed from the need to secure their own pre-funding capital, thus streamlining their internal liquidity operations.” This innovative model presents a significant shift in how cross-border payments are processed, enhancing efficiency and reducing operational bottlenecks.
Global Partnerships and Growth Trajectory
Zynk has formed alliances with five financial institutions worldwide, including both banks and fintech entities. The recent funding comes amidst growing recognition of fintech infrastructure platforms, which are currently experiencing remarkable revenue growth on a global scale. As reported by the Boston Consulting Group, infrastructure fintechs will comprise the second-largest revenue source after payments in 2024.
Operational Reach and Momentum
This T-Hub-backed startup currently supports transactions in six currencies, including the US dollar and Indian rupee. Since its launch in April of this year, Zynk has reportedly achieved an impressive 70% monthly growth, indicating a strong market demand for its services.
A Call for Overhaul in Cross-Border Payments
Emmanuel Vallod, partner and head of projects at Hivemind Capital, emphasized the need for change in the sector, stating, “Cross-border payments are an integral part of global trade and finance, but they continue to be hindered by outdated technologies and significant amounts of tied-up capital. A comprehensive overhaul is long overdue.”