Qiro Finance Secures $1.2M in Pre-Seed Round Led by Alliance and Others

Qiro Finance is a firm that operates within the decentralized finance (DeFi) space, leveraging regulatory compliance to connect stablecoin investors with emerging market asset originators, aiming to provide higher net yields. The company is developing a global tokenized credit protocol that brings together investors, asset originators, and credit underwriters on-chain. Its stakeholders include stablecoin investors seeking fixed yield opportunities, asset originators such as fintechs or non-banking financial organizations looking to borrow capital for expansion, and professional credit underwriters governing the protocol’s risk management network.

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Qiro Finance, a DeFi startup, has secured $1.2 million( Rs 10Cr approximately)  in a pre-seed funding round spearheaded by Alliance, an early-stage web3 accelerator, with further backing from Druid Ventures, Escape Velocity (EV3), Trident Digital, and CMT Digital. Additionally, Qiro Finance was awarded a 100,000 MATIC grant through Polygon’s Village Build Ideas Program and a $50,000 development grant from the Aptos Foundation.

The startup intends to utilize the raised funds to bolster the advancement and broadening of Qiro Finance, with a primary emphasis on enhancing product features and extending the ecosystem. “We eagerly look forward to embarking on our journey to transform the private credit landscape. Our initial efforts will concentrate on providing support to fintech asset originators within Southeast Asian (SEA) markets, with future plans to expand into other emerging markets. Through leveraging the potential of DeFi and Blockchain technology, we remain steadfast in our commitment to establishing a credit ecosystem that is more transparent, efficient, and accessible,” stated Akshay Poshatwar, CEO and Co-founder.

Qiro Finance, a DeFi enterprise, was established by Akshay Poshatwar and Nishikant Bahalkar with the aim of addressing the notable deficiency in credit accessibility within developing economies. This disparity predominantly arises from the prevalence of cautious financial institutions in the credit sector. Its objective is to mitigate this shortfall through the development of a decentralized credit framework facilitating the connection of asset originators from emerging markets with international investors through the utilization of blockchain and stablecoin advancements. The headquarters of the company are situated in Singapore.

Based on a report by KKR, the APAC region holds a mere 21% market share of private lenders, in contrast to the US’s 67%. This significant disparity presents a challenge for borrowers in emerging markets who are seeking access to non-bank credit. Qiro Finance aims to address this issue by facilitating connections between emerging market businesses and international credit investors. By enabling this link, Qiro Finance aims to tap into the potential of the region’s businesses and create a more inclusive credit ecosystem.

Tokenization of Real World Assets (RWA) has emerged as a major trend in the cryptocurrency market. Leading firms like BlackRock and Franklin Templeton have introduced on-chain funds, propelling the sector’s total value locked to $8 billion, as reported by Messari. Qiro Finance is creating a decentralized credit protocol to enable tokenized RWA-backed credit applications. Nishikant Bahalkar, Chief Product Officer and Co-founder, stated, “While RWA credit on-chain is not a new concept, Qiro is pioneering open credit data and risk underwriting infrastructure for RWA credit protocols, tackling the issues of adverse selection and credit defaults in on-chain credit transactions.”

Qiro Finance, a DeFi startup, recently secured $1.2M in pre-seed funding and received grants from Polygon and the Aptos Foundation. The company plans to utilize these resources to enhance product features, expand its ecosystem, and support fintech asset originators in Southeast Asian markets through DeFi and blockchain. Additionally, Qiro Finance aims to address the credit access gap in emerging economies by establishing a decentralized credit framework, facilitating connections between emerging market businesses and international investors, and pioneering open credit data and risk underwriting infrastructure for on-chain credit protocols.