In a surprising move, Xalts, a Singapore-based fintech startup founded just 18 months ago, has acquired Contour Network, a digital trade platform established by eight major banks including HSBC, Standard Chartered, and BNP. The terms of the deal were not disclosed, but it is reported to be in the high single millions, comprised of both cash and stock.
Background on Xalts and Contour Network
Xalts was founded in 2022 by Ashutosh Goel and Supreet Kaur, who previously held senior executive positions at HSBC and Meta, respectively. Backed by Accel and Citi Ventures, Xalts enables financial institutions to build and manage blockchain-based applications. Contour Network, on the other hand, was started in 2017 by a consortium of eight banks with the goal of digitizing trade.
The Deal
According to sources, the acquisition price was undisclosed but is believed to be in the high single millions. The deal will see Xalts integrate Contour’s platform into its own, creating a rail connecting banks, corporations, and other institutions. This integration will enable Xalts’ clients not only to build applications but also connect with each other securely and compliantly.
The Future of Trade Finance
Global trade is expected to reach $30 trillion by 2030, but traders still face significant friction in their transactions. Information is often exchanged manually between importers, exporters, banks, logistics companies, and customs, resulting in lengthy processing times. Xalts aims to address this issue by enabling banks and logistics companies to offer embedded trade and supply chain apps on a single platform to their customers.
The Growth Potential of Xalts
Kaur notes that the company’s biggest growth area is enabling banks to be more connected with corporate customers, offering B2B finance solutions, including trade finance and lending. An example she gives is a global fast-fashion conglomerate with vendors in Vietnam and Bangladesh. Even if the conglomerate’s bank isn’t present in those countries, it can help vendors access financing through a one-click solution on its internal vendor portfolio using Xalts to build integrated apps.
Why This Acquisition Matters
The acquisition of Contour Network by Xalts is significant for several reasons:
- Integration of platforms: The deal will see the integration of Contour’s platform into Xalts’, creating a seamless experience for clients.
- Increased efficiency: By enabling banks and logistics companies to offer embedded trade and supply chain apps, Xalts aims to reduce processing times and increase efficiency in global trade finance.
- Enhanced connectivity: The acquisition will enable Xalts’ clients to connect with each other securely and compliantly.
Conclusion
The acquisition of Contour Network by Xalts marks a significant milestone for the fintech industry. By integrating platforms, increasing efficiency, and enhancing connectivity, Xalts aims to revolutionize global trade finance. As the company continues to grow and expand its services, it will be interesting to see how this deal impacts the industry as a whole.
About Xalts
Xalts is a Singapore-based fintech startup founded in 2022 by Ashutosh Goel and Supreet Kaur. Backed by Accel and Citi Ventures, the company enables financial institutions to build and manage blockchain-based applications. With its innovative approach to global trade finance, Xalts is poised to make a significant impact on the industry.
About Contour Network
Contour Network was established in 2017 by a consortium of eight banks with the goal of digitizing trade. With its platform currently used by 22 banks and over 100 global businesses, including Tata Group, Rio Tinto, and SAIC, Contour is a leading player in the digital trade finance space.
Sources
- TechCrunch: "Xalts Acquires Contour Network to Digitize Global Trade"
- Xalts: "Introducing Xalts: Revolutionizing Global Trade Finance"
Related Topics
- Fintech: The intersection of finance and technology, enabling innovative solutions for financial institutions and customers.
- Blockchain: A decentralized ledger technology that enables secure and transparent transactions.
- Digital trade finance: The use of digital platforms to facilitate global trade and commerce.
