Argentina-based cryptocurrency exchange Buenbit raised $11 million in a Series A funding round led by Libertus Capital, the exchange announced Monday.
Galaxy Digital, FJ Labs and Amaiya Management also participated in the round, CEO Federico Ogue told CoinDesk, as did angel investors such as Alec Oxenford, founder of e-commerce company OLX.
“This is an important Series A for the common numbers we see in Argentina and Latin America,” Ogue said, adding that in the past the company raised $100,000 from friends and family.
According to the CEO, half of the funds will be used to start operations in Peru, Colombia and Brazil or Mexico before the end of 2021. The other half will go toward increasing Buenbit’s staff to 190 from 130 this year, as the exchange will hire people for its product, technology and design teams.
Buenbit plans to list USDC, USDT and Binance USD, and include investment products focused on bitcoin and ether, Ogue said.
The platform allows users to buy and sell cryptocurrencies, and it offers returns on DAI, a stablecoin that accounts for 60% of the company’s trading volume.
“We seek to be a benchmark company in stablecoins in Latin America. We believe that growth in the region will come from that side,” Ogue said.
The company plans to raise more funds in six months to a year, Ogue said.
Buenbit already offers its corporate business unit, Buenbit Pro, in Peru and will launch its app for retail users in August, Ogue stated. He expects to start operations in Colombia in September and in Brazil or Mexico by the end of 2021.
The company is considering making acquisitions to accelerate growth in those countries, the CEO said. So far it has held talks with two potential targets, he added.
Without disclosing figures, Ogue said that Buenbit has been profitable for several months. The company, which launched in 2018, has more than 400,000 users, he said.