Xalts Acquires Contour Network: A Fintech Merger

In a noteworthy development within the fintech landscape, Singapore-based startup Xalts has acquired Contour Network, a prominent digital trade platform established by a consortium of major banks. The acquisition marks a strategic move by Xalts, founded just 18 months ago, to expand its foothold in the financial technology sector.

The Acquisition Deal

While specific terms of the deal remain undisclosed, reports suggest that the acquisition price amounted to a significant sum in the high single millions, comprising a combination of cash and stock. This acquisition underscores Xalts’ ambition to solidify its position in the market and enhance its service offerings.

Background of Xalts and Contour Network

Xalts, supported by notable investors such as Accel and Citi Ventures, specializes in empowering financial institutions to develop and manage blockchain-based applications. On the other hand, Contour Network was established in 2017 by a coalition of eight leading banks, including HSBC, Standard Chartered, and BNP, with the objective of digitizing trade processes. Presently, Contour Network boasts a user base of 22 banks and over 100 global businesses, including industry giants like Tata Group, Rio Tinto, and SAIC.

Vision of Xalts

Founded in 2022 by Ashutosh Goel and Supreet Kaur, both seasoned executives with extensive experience in banking and technology, Xalts addresses the challenges faced by large financial institutions and corporations in managing diverse financial products. The founders recognized the fragmented nature of existing processes, where tasks such as corporate loans, letter of credit issuance, and bank guarantees are handled by disparate teams, leading to inefficiencies and increased costs.

Empowering Financial Innovation

Xalts aims to empower businesses by enabling them to develop customized applications tailored to their specific needs. By leveraging Xalts’ platform, financial institutions can streamline their operations, foster collaboration both within and outside their organizations, and enhance overall efficiency.

Integration of Contour Network

Xalts envisions transforming Contour Network into a pivotal infrastructure connecting banks, corporations, and other institutions. By integrating Contour with its existing platform, Xalts seeks to facilitate seamless communication and transactions, thereby creating a secure and compliant environment for its clients. Initially, the focus will be on enabling banks and logistics companies to offer integrated trade and supply chain solutions on a unified platform.

Future Outlook

With global trade projected to reach $30 trillion by 2030, the demand for streamlined and efficient trade processes is poised to surge. Xalts aims to capitalize on this opportunity by facilitating greater connectivity between banks and corporate clients, offering innovative B2B finance solutions, and simplifying access to financing for businesses worldwide.

Conclusion

The acquisition of Contour Network marks a significant milestone for Xalts as it seeks to revolutionize the fintech landscape. By leveraging the synergies between both entities, Xalts is poised to enhance its offerings, drive innovation, and pave the way for a more efficient and interconnected financial ecosystem.