Hong Kong Fintech Startup Reap Raises $40M for Web3 Payments

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

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

Reap said the proceeds will be used to set up regional hubs across Asia, North America and Europe, doubling the team by the end of next year. In the meantime, the company will continue to build Web3 infrastructure in partnership with cryptocurrency firms to give them access to traditional merchants and brick-and-mortar services. The infrastructure is expected to be launched as early as January.

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

In November last year, Reap launched a business 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 pay back credit card balances with stablecoins.

Their 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. Traditional business clients include Taiwanese computer maker Acer and Pickupp, a Hong Kong-based logistics startup backed by Swire Properties.

The crypto-refund feature is currently still in testing, Guo says, 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 more fluid bilateral movement between the Web2 and Web3 worlds,” he says. “For us, the best way to be able to bridge this gap at the moment is through a payment method, like a Visa business credit card that is available on a global basis.”

Reap was established in 2018 and provides digital financial services for businesses ranging 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 revenue in 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 employees in Hong Kong, Singapore, Vietnam, Japan, Canada, Australia and Malaysia.