Alpaca, the stock trading API developer based in San Mateo, has announced that it has raised $15 million in the form of a convertible note from SBI Group, a Japanese financial firm. This strategic investment brings Alpaca’s total funding to $120 million since its establishment in 2015 and will accelerate the company’s expansion in Asia.
Key Takeaway
Alpaca, the stock trading API developer, has secured a
5 million convertible note from SBI Group. This investment will enable Alpaca to accelerate its expansion in Asia and introduce new products and services to its US market offerings. Alpaca’s revenue has increased significantly, and the company’s brokerage platform is being utilized by various companies globally.
Expanding into Asia
With its B2B2C model, Alpaca currently serves more than 5 million end-users worldwide through over 100 corporate partners in 30 countries. CEO Yoshi Yokokawa stated that approximately 20% of Alpaca’s clients are based in Asia, particularly in Southeast Asia. The investment from SBI Group, which manages over $2.6 billion in assets, will allow Alpaca to enhance its presence in Asia and tap into SBI Group’s extensive network in the region.
Growth and Potential
Alpaca’s revenue has increased by 15 times since its last funding round, and the number of investing apps on its platform has quadrupled to around 150. This growth is attributed to a variety of revenue streams, including trading fees, foreign exchange fees, SaaS recurring, and more. Alpaca intends to launch new products and services, such as options, bonds, mutual funds, and individual retirement accounts, to further expand its offerings to the US market.
Broader Services and Licensing
Alpaca’s brokerage platform is already utilized by companies such as Thailand-based digital bank Dime and Singaporean investment app Syfe to provide US stock trading services to their customers. Additionally, Alpaca recently obtained a broker-dealer license from Japan’s Financial Services Agency, enabling the company to offer US stock trading services to enterprises’ end-users in Japan.
The Crypto Market
Alpaca also offers a crypto API, allowing businesses and developers to trade both crypto and stocks while building apps that provide investing services in both areas. Despite the crypto market’s current lackluster revenue generation, Yokokawa believes that the crypto API will grow as the market recovers.
