Reap Completes Seed Financing to Help Small Businesses Rebuild Economies
HONG KONG, July 14, 2020 /PRNewswire/ -- Reap, a financial technology company dedicated to upgrading small businesses' capabilities, has completed its seed fund raising. The company raised US$5 million from investors that include Global Founders Capital, Bertelsmann Asia Investments, Index Venture, Fresco Capital and Hustle Fund. The newly raised funds will be used to widen the products and services Reap delivers and expand across Asia.
Reap currently provides corporate payment solutions that enable businesses to pay expenses and collect revenue via a credit card – to and from anyone, anywhere. This helps small and medium-sized enterprises (SMEs), which often have constrained access to traditional sources of financing, digitalise their financing solutions and provides quick access to alternative sources of liquidity to help smooth cash flow and increase capital efficiency. Both are critical to driving growth – let alone surviving – in the post-COVID-19 economy.
Daren Guo, co-founder of Reap, explained: "We are thrilled to be supported by leading global investors. We launched the company because small businesses need a reliable partner who understands their financing challenges and delivers solutions designed to meet their needs. We are deploying these newly raised funds at a time when many small businesses in Hong Kong are struggling to help rebuild the local economy. SMEs constitute over 98% of Hong Kong business establishments and employ about 45% of the city's private sector workforce."
Reap enables small businesses to use their credit cards as a rolling credit source. The company's solution is delivered securely with its technology partner, Stripe, one of the world's largest online payment processing firms. Reap is also recognised by Visa as a Business Payments Solution Provider. Visa recently completed a survey in which 25% of SMEs in Hong Kong cited cash flow management as one of their main challenges. This is in part because most of SME's working capital arises from retained earnings and because a recent OECD report indicates that less than 20% of these companies have access to overdraft facilities or bank lines of credit to help them weather challenging times.
The need for Reap's innovative technology platform is clear as Hong Kong and peer economies recover from COVID-19. The company's transaction volume has grown at a compound annual rate of 40% per month over the past year, amounting to more than US$100 million since inception two years ago.
Looking to the future, Kevin Kang, co-founder of Reap, said: "We are proud to work with our investors, partners and clients to help rebuild Hong Kong's economy. The same Visa survey showed that only 21% of SMEs in Hong Kong have invested in digital transformation tools to boost productivity, and cash flow management is a key component of this. We want to help businesses across Asia access these tools via a cloud-based platform that requires minimal investment but has the potential to deliver outsize returns."
Reap currently provides digital credit payment processing and revenue collection services in Hong Kong, Singapore and Vietnam will soon launch in Malaysia and South Korea.
Tito Costa, Partner at Global Founders Capital, added: "We are excited to partner with the team as Reap continues to support small businesses in Asia with innovative payment and credit solutions. In these uncertain times, the company is filling a critical gap by helping small businesses digitise and manage their working capital and cash flow needs."
Reap is a financial technology company dedicated to upgrading small businesses' capabilities. We deliver corporate payment solutions to improve the way small businesses operate today and prepare them for the challenges of tomorrow. Reap's online payments platform enables small businesses to pay expenses and collect revenue – to and from anyone, anywhere – entirely via credit card. The company has revolutionised the way businesses manage cash flow, leveraging credit cards to smooth cash flow and increase capital efficiency by digitising day-to-day finances and transactions. As strong advocates of small to medium-sized businesses, Reap has brought core business processes online – regardless of business size. Reap continues to innovate, advancing technology and building better tools for small business financing, transactions, data, automation and more.
Reap is supported by an empowering group of investors; including Global Founders Capital, Bertelsmann Asia Investments, Index Ventures, Fresco Capital and Hustle Fund. Our current operation spans Hong Kong, Singapore and Vietnam and continues to expand. For more info, please reach us at firstname.lastname@example.org