Naver Financial, SoftBank invest $25 mn in blockchain startup TBCASoft

South Korea-based Naver Financial, the fintech arm of online giant Naver Corp., has invested $20 million in a Series B funding round for the US-based blockchain startup TBCASoft Inc., according to the company on August 5.

The Series B funding was led by Naver Financial, which will first invest $15 million, followed by an additional $5 million. SoftBank Corp., which already invested in TBCASoft in 2017, also participated with an investment of $5 million.

The latest funding round will make Naver Financial the second-largest institutional investor with an 8.9% stake in TBCASoft. SoftBank is currently the largest institutional investor with around a 20% stake in the company.

TBCASoft provides blockchain technology-based mobile payment solutions to mobile carriers and merchant service providers. Its core service is HIVEX Network, a cross-network payment system.

HIVEX Network is expected to make mobile payment integration much easier for both franchise stores and consumers given the growing demand for convenient and comprehensive services that can help enhance collaboration among mobile payment providers, according to Choi Jin-woo, the vice president of Naver Financial.

"HIVEX Network's latest technology lowers the cost structure of the overall mobile payment ecosystem alongside enhancing the level of security," said Choi.

The US-based blockchain startup plans to use the proceeds to roll out HIVEX Network in Asian markets including Korea, Japan and Taiwan, followed by tapping into Southeast Asia.


By Danbee Lee