Benzinga - Alpaca, the San Mateo-originated startup, is carving a notable niche in the fintech sector by offering stock and cryptocurrency trading services via an easily integrated Application Programming Interface (API).
This model empowers fintech ventures and other businesses to blend trading functionalities within their applications, democratizing stock market access.
Recently, the startup secured a substantial $15 million convertible note from Japan's financial behemoth SBI Group, fueling its Asian expansion ambitions.
A Step Towards Global Expansion The freshly infused capital, nudging the total fundraising to an impressive $120 million since its 2015 launch, paves the way for Alpaca's robust expansion in the Asian markets.
CEO Yoshi Yokokawa shares the strategic vision behind the move, emphasizing the enhancement of the company's B2B2C (Business to Business to Consumer) model that presently caters to over 5 million end-users globally through more than 100 corporate partnerships spread across 30 countries.
Nearly 20% of Alpaca's clientele hail from the Asian continent, primarily from the Southeast Asian region, with existing partnerships in Saudi Arabia, Indonesia, Thailand and India.
The entry of SBI, a firm managing over $2.6 billion in assets, not only augments Alpaca's foothold in Japan but also heralds increased user engagement from the region.
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Enriching Brokerage Offerings Alpaca's collaborative approach is already adding value to various financial ecosystems. Thailand’s digital bank Dime and Singapore’s investment app Syfe are leveraging Alpaca’s brokerage platform to extend U.S. stock trading services to their users.
Further bolstering its position, Alpaca recently acquired a broker-dealer license from Japan’s Financial Services Agency, permitting the offer of U.S. stock trading services to enterprise end-users in Japan.
As part of its continuous growth trajectory, Alpaca unveils plans to introduce new financial products and services like options, bonds and individual retirement account options for the U.S. business sector.
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Revenue Surge and Community Building Since the significant $50 million Series B funding in 2021, Alpaca had a staggering 17-fold increase in revenue and a 15-fold growth in the number of investing apps on its platform, now tallying around 150. Despite the company cutting its staff from 175 to 150 to enhance operational efficiency, its dedication to community building remains undeterred.
Tens of thousands of active monthly developers now have the liberty to interact with Alpaca’s platform, exploring and integrating its trading services.
Alpaca's journey, enhanced by the backing of reputed investors like Portage Ventures, Spark Capital and Tribe Capital, mirrors a fine blend of innovation and collaboration. The recent SBI investment undeniably marks a significant milestone, anchoring Alpaca's position in the fintech realm and its stride towards global outreach.
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