Kasu has successfully raised $3 million in a seed funding round, with notable participation from Woodstock, Morningstar Ventures, and Faculty Group as lead investors.
A diverse group of investors, including Cypher Capital, Matterblock, Andromeda Capital, NxGen, Rarestone Ventures, Asteroid Capital, and Optic Capital, made significant contributions to the project.
The latest funding round also witnessed active participation from several prominent KOLs, industry angels, and selected Web3 investment syndicates. This level of support clearly demonstrates the widespread endorsement of Kasu's mission to revolutionize RWA lending and risk management technology.
Kasu, a one-of-a-kind collaboration, brings together the Faculty Group and Apxium Technologies (Apxium) in a joint venture (JV). With Faculty Group's proven success in Web3 and DeFi, combined with Apxium's award-winning innovation in FinTech and TradFi, it was a natural opportunity to come together and introduce a groundbreaking approach to RWA lending.
Jeremy Coombe, Founder and CEO of Apxium, stated:
"Apxium manages over $2 billion in annual invoice transaction volume across the US, UK, Canada, and Australia. Over the 7 years of Apxium’s existence, we’ve never lost a single dollar during our invoice lending activities. We are excited to be bringing our technology to the DeFi space in what is a truly symbiotic outcome, where Apxium can access vast DeFi liquidity reserves while offering exceptional risk adjusted returns to investors."
The funds raised will be used to further develop Kasu's innovative platform, which revolutionizes the current lending standards in RWA by utilizing proprietary technology. This technology optimizes the cash flows of businesses, enhancing credit risk and ultimately providing superior risk management and higher quality yields. Kasu combines automated debt recovery mechanisms and robust structured credit to offer the most optimized risk-adjusted private credit RWA yields in the DeFi industry.
This achievement is made possible through Apxium's highly acclaimed SaaS+FinTech innovation platform. Apxium specializes in delivering intelligent solutions for Receivables and Payables Financing to top accounting and law firms, as well as their clients.
The technology has already demonstrated its ability to reduce accounts receivable administration and debtor days by up to 50%. This significantly reduces the risk associated with a business's outstanding invoices before advancing funds.
Apxium has been recognized with numerous prestigious awards and accolades at both the State and Federal Government levels in Australia. These include the most innovative "Business Award and the e-Commerce Exporter" of the year award at the 2023 South "Australian Premier's Business and Export Awards." Additionally, the Australian Trade and Investment Commission has named Apxium as one of the "Best and Brightest Fintechs in Australia," further highlighting their excellence in the industry.
Kasu has a strong client base that includes esteemed accounting firms, including top-ranking firms in the United States, Canada, the United Kingdom, and Australia. These firms are part of the global 'top 10' accounting brands. Apxium's software effectively manages over $2 billion USD in annual invoicing for its rapidly expanding user base. This presents an opportunity for Kasu to finance approximately $150 million in invoices within the first year of operation, with the potential to fund an additional $7.5 billion worth of invoices through these firms' existing client books.
Accounting firms offer a relatively secure lending industry, as they pose low credit risks that are not influenced by crypto markets or the broader traditional economy. The demand for accounting services remains constant, even during economic downturns or periods of decline in the crypto market. This lack of correlation with other markets is a significant advantage that Kasu brings to DeFi investors.
