Decentralised finance (DeFi) startup Qiro Finance has secured USD 1.2 million in its pre-seed funding round led by an Web3 accelerator Alliance. The round also saw participation from Escape Velocity, CMT Digital and entities like Trident Digital and Druid Ventures.
The startup intends to utilise the fresh new funds for product development, workforce expansion, and ecosystem growth, aiming to launch its mainnet by the end of 2024.
Founded in 2023, Qiro Finance is an asset-backed decentralised financial lending platform and serves in the B2B space around wholesale lending. It focuses on building a decentralised credit protocol to connect emerging market asset originators (NBFIs) with global investors by leveraging blockchain and stablecoin rails.
It aims to bridge the credit gap prevalent in emerging markets. This gap is attributed to the dominance of banks in the credit market and their risk-averse approach.
Rising interest in Real World Assets
Real World Assets (RWAs) are gaining traction, signalling a noteworthy shift as traditional firms pursue alternative financing avenues embedded in crypto. This trend not only broadens global financing options but also fosters enhanced accessibility, said one of Qiro’s investors.
This comes at a time when the Reserve Bank of India has been critical of cryptocurrency, saying they pose systemic risk to the financial systems. Besides, a 30% tax on cryptocurrency sales and 1% TDS on crypto transactions above USD 120 have also been imposed. Taking this into account, India ranks among the top five countries in peer-to-peer P2P crypto trading.
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