It looks like we just can’t get rid of the old trusty legal tender. SoCash says that, according to the Monetary Authority of Singapore (MAS), cash is still widely used in the Lion City with about 20 million withdrawals from banks and ATMs, worth a total of US$3.6 billion.
Riding this wave, the startup that allows you to withdraw cash from any merchant just like an ATM, announced today it has raised a new round of angel funding worth US$600,000. The funding comes from unnamed “veteran bankers and technologists.”
The startup uses your bank’s mobile app to let you transfer an amount to the merchant’s bank account. Then you can pick up the amount in cash from the merchant. The idea is to provide users with more alternative cash sources. As for merchants, SoCash provides them with extra traffic in their stores and a new revenue source – merchants get a fee from the startup for every transaction.
The funding will be used to grow SoCash’s sales team so it can get more banks in Southeast Asia on board. It’s in “late-stage talks” with some Asian banks to establish partnerships for its product but doesn’t get specific.
“The funds will allow us to onboard the sales team that can close the deals faster and accelerate our bank network growth to gain transaction share across markets,” says SoCash CEO Hari Sivan.
In total, the startup has secured US$925,000 in angel funding and is looking to raise its first institutional round. It’s the first fintech startup in Singapore to receive the MAS Financial Sector Technology & Innovation Scheme (FSTI) grant for proof of concepts.
MAS announced the FSTI initiative in 2015, committing US$159 million over a period of five years. The aim is to convince financial institutions to open innovation centers in Singapore and support businesses creating innovative finance-related products and services.
Converted from Singapore dollars. US$1 = S$1.40
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