In a surprising turn of events, Singapore-based fintech startup Xalts has made headlines with its recent acquisition of Contour Network, a digital trade platform established by a consortium of eight major banks, including HSBC, Standard Chartered, and BNP. The acquisition, which involved a high single-digit million-dollar deal comprising cash and stock, marks a significant milestone for both companies.
Key Takeaway
Xalts’ acquisition of Contour Network signifies a strategic move towards revolutionizing the global trade and finance landscape, aiming to enhance connectivity and efficiency for financial institutions and businesses worldwide.
The Acquisition
Founded just 18 months ago, Xalts has quickly gained traction in the fintech industry, backed by prominent investors such as Accel and Citi Ventures. The company specializes in empowering financial institutions to develop and manage blockchain-based applications, aiming to streamline complex financial processes.
On the other hand, Contour Network, initiated in 2017, has garnered the support of 22 banks and over 100 global businesses, including renowned names like Tata Group, Rio Tinto, and SAIC. The platform was designed to digitize trade operations, offering a more efficient and streamlined approach to global transactions.
The Vision
According to Xalts’ co-founders, Ashutosh Goel and Supreet Kaur, the acquisition of Contour Network aligns with their vision of creating a seamless ecosystem for financial institutions and businesses. Their goal is to integrate Contour into Xalts’ platform, establishing a robust network that connects banks, corporations, and other entities in a secure and compliant manner.
Empowering Financial Institutions
Xalts’ primary focus post-acquisition is to enable banks and logistics companies to offer integrated trade and supply chain applications on a unified platform, catering to the evolving needs of their customers. By leveraging Xalts’ technology, these institutions can streamline processes, reduce friction, and enhance the overall trade experience.
Future Prospects
With global trade projected to reach $30 trillion by 2030, Xalts is poised to play a pivotal role in reshaping the landscape of B2B finance solutions. By fostering greater connectivity between banks and corporate clients, the company aims to facilitate seamless trade finance and lending, ultimately driving efficiency and growth in the global trade ecosystem.
As Xalts continues to expand its reach and capabilities, the acquisition of Contour Network sets the stage for a new era of innovation and collaboration in the fintech industry, promising a brighter and more interconnected future for businesses and financial institutions worldwide.
