Saturday, April 13, 2024

Wind.app Raises $3.8 Million in Pre-Seed Funding to Revolutionize DeFi

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Wind.app, a Singapore-based startup founded by Hussain Elius, the co-founder of Pathao, has recently secured $3.8 million in pre-seed funding. The funding round was co-led by Global Founders Capital and Spartan Group, with participation from prominent backers, including Saison Capital, Alumni Ventures, and Tiny VC. Wind.app aims to disrupt the decentralized finance (DeFi) space with its innovative self-custodial smart contract wallet.

Elius, renowned for his success with Pathao, a leading ride-sharing app in Bangladesh, has turned his attention to DeFi with Wind.app. The wallet offers three primary features to its users. Firstly, it enables businesses to send payments to remote employees worldwide. Secondly, it serves as a virtual bank account for individuals, providing them with a convenient and secure platform for managing their finances. Lastly, the Wind.app builds an on-ramp/off-ramp infrastructure to facilitate seamless conversion between cryptocurrencies and fiat currencies.

Within a few months of its launch, Wind.app has already facilitated over $3 million in annualized gross transaction volume (GTV). The startup plans to leverage its recent funding to develop its technology further, obtain necessary licenses and ensure compliance while expanding its customer base.

One of the distinguishing factors of Wind.app is its user-friendly approach to blockchain and cryptocurrency. Elius recognized the challenges individuals without a tech background face in navigating the crypto space. To address this, Wind.app eliminates the need for users to deal with complex concepts such as gas fees, private keys, and public keys. Instead, users can sign up for Wind.app using their email addresses or phone numbers. Additionally, Wind.app offers stability by allowing users to store their funds in stablecoins rather than volatile cryptocurrencies like Bitcoin.

Initially targeting freelancers and remote workers in Southeast Asia, Wind.app already lives in the Philippines, India, and Bangladesh. By providing a low-fee alternative to exchanges, Wind.app allows Web3 startups in these regions to pay their remote workers quickly. In the future, the company aims to expand its reach to serve the underbanked population by providing them with a simple and accessible platform to accept payments.

Elius highlighted the advantages of Wind.app compared to competitors like Wise or Payoneer. Wind.app utilizes blockchain for settlement, enabling lower fees and faster transactions. Moreover, Wind.app’s self-custodial wallet eliminates the need for advanced know-your-customer (KYC) processes, making it easier for individuals with limited access to traditional banking services to start accepting money.

While Wind.app faces competition from established players like Binance and Coinbase, Elius sees them more as trading platforms rather than direct competitors. Instead, he views Payoneer and Transferwise as more aligned rivals due to their focus on facilitating payments and remittances.

Regarding user safety, Wind.app prioritizes security by adopting a self-custodial wallet approach. This means that the startup does not have access or control over user funds. Wallets are secured cryptographically in the blockchain, with private keys stored directly on users’ phones. Even in the event of Wind.app shutting down, users will retain access to their wallets and can seamlessly transfer funds to other wallets.

With this recent funding, Wind.app is poised to make significant strides in revolutionizing DeFi. The startup will continue its technological advancements while securing necessary licenses and compliance measures. Additionally, Wind.app aims to expand its customer base through strategic customer acquisition strategies targeting both businesses and individual users.

As Wind.app continues on its path of innovation and accessibility, it is expected to attract more users seeking a seamless and user-friendly DeFi experience.

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