Bitcoin money transfer startup Zap has become an investor favorite within a month after Salvador President Bukele introduced a national bitcoin wallet program. While it is not the official payment app in El Salvador, the main Bitcoin payment app of the company Strike is one of the most popular in Central America. The creators of the app worked closely with the El Salvadoran government in the wake of their Bitcoin adoption as a legal tender.
The Bitcoin payment app is currently looking to raise funds for expansion and the El Salvador push has helped it to become a popular choice among venture capitalists. The company had first raised money in April 2020 closing a $3.5 million funding round, giving it a $16.5 million valuation. The founder of the company Jack Mallers didn’t reveal much about the financial details and how much the company is looking to raise, but looking at the soaring demand for crypto companies, Zap could potentially see its valuation grow by many folds.
“The company seems to get more and more valuable, with more and more inbound interest and demand,” Mallers said in an interview.
Zap Plans Expansion in 50-100 Countries
Mallers is hoping to expand Strike’s footprint beyond El Salvador and the US markets and said the money raised from their upcoming funding round would be used for a global expansion. Strike bitcoin app is currently being tested in the UK, Canada, and Australia and hopes to expand its services to 50-100 countries by year-end. The firm also plans to introduce Visa payment cards with a Bitcoin reward option.
Looking at some of the funding rounds closed by crypto companies this year, attracting hundreds of millions of dollars from investors, Strike could also expect a similar turnaround.
The crypto market might have plunged by 50% from the top but despite that crypto companies have recorded great success. FTX crypto exchange closed the biggest funding round in crypto history with a $900 million raise followed by BlockFi with $350 million and Blockchain.com at $300 million. Market pundits expect crypto companies to continue their phenomenal run as digital asset demand continues to rise.