Coinflow Labs Secures $2.25M Seed Funding to Transform Payment Infrastructure for Merchants

May 29, 2024, 3:33 pm
Coinflow Labs
Coinflow Labs
CryptoEconomyFinTechGamingInfrastructureProductService
Location: United States, Illinois, Chicago
Employees: 1-10
Total raised: $3.7M
Coinflow Labs, a pioneering payment infrastructure solutions provider based in Chicago, has successfully closed a $2.25M seed funding round. The funding was led by CMT Digital, a prominent investment firm, with participation from esteemed investors such as Reciprocal Ventures, Jump Crypto, Draper Dragon, and Digital Currency Group, along with various angel investors. This latest round of funding follows a pre-seed round that Coinflow Labs raised in early 2023, with the majority of their initial investors showing confidence in the team and doubling down on their support.

Coinflow Labs is on a mission to revolutionize the way merchants receive payments by offering instant settlement solutions. Traditionally, merchants accepting card payments have had to endure multiple business days of delay before receiving their funds, putting a strain on their operations. Coinflow Labs' innovative payment infrastructure aims to reduce this waiting time significantly, allowing merchants to access their funds instantly. The company provides a comprehensive payment stack that includes chargeback-free payment acceptance and instant settlement in stablecoins. Additionally, Coinflow Labs offers an instant fund disbursement product, enabling businesses to swiftly pay out funds from stablecoins to their users' bank accounts using real-time payment rails such as Visa Direct, RTP via the clearing house, and instant SEPA.

Currently, Coinflow Labs' products are operational on multiple blockchains, utilizing these networks as the settlement layer. With over 50 merchants already onboard and a rapidly growing customer base, Coinflow Labs has seen a remarkable 100% increase in processed volume in the last quarter. Since entering the market in early 2023, the company has retained its customers, with no reported instances of clients switching to other providers. Coinflow Labs has also established partnerships with several US banks for payment processing and fund disbursement services. Their payment acceptance product allows merchants to accept payments in over 170 countries, while the fund disbursement product is currently available in the US and EU, with plans to expand to additional jurisdictions in 2024.

Daniel Lev, Co-Founder and CEO of Coinflow Labs, expressed the company's commitment to bridging the gap between traditional finance and blockchain technology, creating a value-added service for merchants that enables instant settlement. With the support of their investors and partners, Coinflow Labs is poised to onboard more customers and lead the way in developing FinTech 2.0, the next generation of financial blockchain technology that prioritizes quicker payments for merchants.

Sam Hallene, Investment Partner at CMT Digital, commended Coinflow Labs for their innovative use of blockchain technology to facilitate instant settlement and payment solutions. He highlighted the company's ability to bridge the gap between web3 and traditional web2 systems, making it easier for web3 products to integrate and enhancing financial operations for web2 companies. In alignment with CMT Digital's mission to invest in blockchain technologies reshaping global markets, Hallene expressed excitement in supporting Coinflow Labs as they revolutionize the landscape of commerce and financial technology.

The recent funding secured by Coinflow Labs will enable the company to expand its services to more merchants across various verticals, enter new jurisdictions, further enhance its product offerings, and recruit key team members to drive growth and innovation.

About Coinflow Labs:
Coinflow Labs is a blockchain-based payment processor that specializes in enabling instant settlement for both payment acceptance and payouts. Serving companies in diverse industries such as gaming and music, Coinflow Labs has worked with notable clients including Solana Labs, Faraway, and Audius. The company's platform offers additional value-added services such as complete chargeback protection, analytics, and KYC/KYB. For more information on Coinflow Labs, visit their website at https://coinflow.cash.

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In conclusion, Coinflow Labs' successful seed funding round marks a significant milestone in their journey to transform payment infrastructure for merchants. With a focus on innovation, efficiency, and trust in the evolving web3 space, Coinflow Labs is well-positioned to lead the way in revolutionizing financial blockchain technology and empowering merchants with instant settlement solutions.