Crypto Financial Service Provider Babel Finance Raises $40 Million

By Noah Long ● May 26, 2021
  • Babel Finance announced recently that it raised $40 million in Series A funding. These are the details.

Babel Finance — a leading global crypto financial service provider — announced recently that it raised $40 million in Series A funding. This round of funding led by Zoo Capital, Sequoia Capital China, Dragonfly Capital, BAI Capital and Bertelsmann, and Tiger Global Management, with follow-on participation from existing investors.

This funding demonstrates that Babel Finance is highly sought after by top global venture capital and private equity investors as well as family offices. And these institutions span across diversified backgrounds and cover capital market resources in Asia, North America, and Europe.

Babel Finance’s success in earning global investor recognition through this round of fundraising was largely due to the company’s fast growth and resilient performance through market cycles since inception. And as of February 2021, Babel Finance has served over 500 institutional clients, and its crypto lending business has reached an outstanding balance of US$2 billion (in cryptocurrency). And combining financial innovation with prudent risk management, the company has emerged as one of the largest crypto derivative players with a monthly trading volume of US$8 billion.

This investment marks a debut in Asia’s crypto finance industry for Zoo Capital, BAI Capital, and Tiger Global Management. And it also signals a growing confidence and recognition of the future development of the industry in the region.

Going forward, Babel Finance is committed to servicing mainstream investors by offering crypto financial products under their respective compliance regimes. And to better meet institutional requirements, the company has devoted significant resources towards global compliance, including applying for relevant licenses in North America, Europe and Asia. And all this effort is to spearhead best practices that support a crypto compliant environment. Collectively with global industry leaders, Babel Finance is proactively working with regulators in different jurisdictions to define best compliance practices.

Launched in 2018, Babel Finance is one of the world’s largest crypto financial service providers, offering crypto lending, asset management and prime financing to institutions and qualified investors worldwide.

KEY QUOTES:

“The alliance with our new investors from traditional finance is a critical step for us to offer more innovative products, strengthen compliance controls, and ultimately provide a full suite of reliable services to meet the growing demand from mainstream investors who are keen to add crypto assets in their portfolio.”

— Flex Yang, CEO of Babel Finance.

“Babel Finance aims to become a global powerhouse at scale and bandwidth in the industry matching our counterpart DCG in the US. Continuing the momentum from last year, Babel’s growth will be further fueled by financings, investments, M&As, and strategic partnerships with investors that are aligned with our vision.”

— Del Wang, Co-founder of Babel Finance

“We are pleased to partner with Babel Finance, and this investment marks Zoo Capital’s first initiative in the crypto industry. I believe our global network and experience will provide valuable support for Babel Finance to build a sophisticated gateway for the traditional market.”

— Bowen Wang, Head of Crypto at Zoo Capital, the only early-stage venture fund of Boyu Capital

“BAI focuses on investing in leaders of emerging industries, and crypto finance is an important sector under our Fintech coverage. Babel Finance is clearly a winning bet for us as showcased by its strong market know-how, financial innovation, and risk management.”

— Annabelle Long, Founding and Managing Partner at BAI Capital

“Leveraging resources from our new investors, we will continue to invest heavily in compliance, technology infrastructure and talent acquisition, including channel partnerships and selected M&As. With increasing institutional participation, Babel Finance is well-positioned to bridge Eastern and Western crypto markets by providing best-in-class crypto financial services.”

— Yulong Liu, Partner, and Head of Global Partnerships of Babel Finance

“Babel Finance has an ambitious goal of building a robust financial infrastructure for the crypto industry, which goes in tandem with the evolving trend towards the institutionalization of this industry. We are confident in their potential to become an international leader.”

— Bo Feng, Managing Partner at Dragonfly Capital