Neat, a Hong Kong-based startup that provides startups and SMEs entry to bank cards and banking companies has pulled in $three million in contemporary funding.
The brand new spherical is led by China-based VC Linear Capital with participation from Hong Kong’s Sagamore investments and present backers Dymon Asia Ventures and Portag3 Ventures . Neat beforehand landed a $2 million seed spherical earlier this yr.
In a nutshell, the corporate provides fast entry to pay as you go Mastercard-based playing cards and fundamental banking companies. Playing cards are charged at round $7.50 per 30 days, with varying prices on incoming, outgoing and worldwide funds. There may be additionally a client choice, which is very like European startups Monzo, Starling and Revolut, however Neat is extra centered on enterprise customers.
We profiled the company in August and since then U.S-based Brex — a two-year-old startup that gives comparable companies — has gone on to reach a billion-dollar valuation. That reveals that there’s loads of validity within the mannequin… no less than within the eyes of the buyers who write these all-important checks.
Neat is in a a lot earlier stage of improvement and it’s serving a extra fragmented market in Asia by way of Hong Kong. Once we talked to CEO David Rosa earlier this yr, he mentioned that “a big portion” of its clients have been both primarily based in Hong Kong or related to the market, however Neat does supply companies globally with a give attention to Asia. Particularly, the corporate has launched worldwide funds — which permit customers to pay out abroad with out incurring exorbitant charges — whereas Rosa mentioned it’s engaged on different multi-currency options and integrations with third-party companies corresponding to accountancy and extra.
Neat already claims to have clients in 100 nations, however with Linear Capital’s backing, it’s aiming to zone in on Chinese language companies which can be on the lookout for banking choices in Hong Kong. Given the appreciable management on shifting capital out of Mainland China, Neat could also be a straightforward choice for Chinese language startups that want to go international however don’t need the trouble of coping with conventional banks to arrange their Hong Kong entity. However after all, there may be loads of incumbent competitors.