Although a possible acquisition of Zipmex by Coinbase was being considered, the two decided to make a strategic investment instead. Zipmex is currently in the process of a Series B+ increase that could bring it to $400 million.
After deciding against full acquisition, Coinbase agreed to invest in Zipmex, a Southeast Asian crypto exchange, as part of its most recent fundraising round.
According to people familiar, the two had discussed the possibility of Coinbase purchasing Zipmex, but they ultimately settled on a strategic investment. Coinbase committed to the investment by signing a term sheet in March.
According to another person familiar with the talks, Zipmex has been seeking investors in recent weeks to raise $40 million for a valuation of $400million. Babel Finance could lead the round, they said. However, a spokesperson for Babel refused to comment.
Zipmex spokesperson said that they are currently raising Series B+ capital and were open to speaking with a variety of investors. We are still working on valuation and lead investors. We are unable to comment on speculations or rumors in the market.
Zipmex was founded by Marcus Lim in 2018 and has raised $52 million in Series A funding. This includes investments of $41 Million and $1.1 million in September 2021, and March 2019. B Capital, TNB Aura and V Ventures are its existing investors. Master Ad, MindWorks Capital, Bank of Ayudhya’s Krungsri Finnovate and Bank of Ayudhya also contributed to the funding. These rounds raised funds to boost Zipmex’s presence in Southeast Asia.
Although Zipmex is legally based in Singapore, it also has roots in Thailand, where it holds a license to exchange digital assets. This license was issued by the Ministry of Finance. The Bangkok Post reported in December last year that Zipmex was responsible for about 25% of Thailand’s digital assets market turnover.
The company has also established offices in Australia, Singapore, Thailand, Australia, and Indonesia.
Cash conservation
Coinbase is currently in cash conservation mode after going public in April through its landmark Nasdaq direct listing. In an attempt to adapt to the volatile crypto markets and harder macro environments, Coinbase stated last week that it would extend its hiring freeze.
It had just announced plans for reducing spending to increase revenue a few weeks prior, after reporting a net loss of $430 Million during the first quarter.
