OpenFX, a fintech startup that helps with cross-border payments, has raised $23 million in seed funding. The main investor is Accel, along with other investors like NFX, Lightspeed Faction, Castle Island Ventures, Flybridge and Hash3.
OpenFX will use the money to grow its business in Latin America and Asia, create new money management products, and follow the rules in more countries.
The company was started in early 2024 by Prabhakar Reddy, who also helped start FalconX. It provides high-quality financial tools for fast cross-border payments between big institutions.
OpenFX, which kept its work secret until now, says it has already handled $10 billion in transactions over the past year.
The startup’s leaders have experience working at big companies like PayPal, Slack, Affirm, and Kraken, as well as top banks like JP Morgan, Goldman Sachs, and Citi. The team has 42 employees in the US, UK, UAE, and India offices.
Reddy helped start FalconX, a digital asset trading company worth $8 billion in 2022. Before that, he worked as an investor at Accel.
“The $200 trillion annual FX market still runs on infrastructure designed in the 1970s, trapping approximately $4 trillion in working capital and extracting hundreds of billions in unnecessary fees annually,” Reddy said. “While domestic real-time payments have become the standard, cross-border money movement remains stuck in an analog era.”
OpenFX says its technology makes foreign exchange (FX) transfers much faster and cheaper than usual. They claim transfers are 99% faster and up to 90% less expensive than traditional ways because their system works daily.
The company also says that 90% of transactions on its network finish in less than an hour. Normally, these transfers take two to seven days to complete.
Shekhar Kirani, a partner at Accel, said the firm was drawn to the team’s execution and vision. “OpenFX represents that rare combination of an exceptional founding team tackling a massive market inefficiency with institutional-grade infrastructure,” he said. “They’re building what could become the AWS of global finance: secure, trusted infrastructure that developers and businesses can use to transform cross-border commerce.”
“In a world transformed by AI and agentic payments, the final frontier of digital transformation is the movement of money itself,” Reddy said. “We’re building the invisible rails that will power the next decade of global commerce—making international payments as seamless, instant, and reliable as sending an email.”
Read more- Trust Bank Cuts Losses with Strong Revenue Growth
