Trace Finance Raises $32M Series A for Global Payments Growth

Trace Finance, a key player in cross-border payment solutions, has successfully closed a significant $32 million Series A funding round. This capital infusion, led by U.S. venture capital firm Coinfund, marks the firm's debut investment in Latin America and signals a strong endorsement of Trace's innovative approach to international financial transactions. The funding will be instrumental in propelling Trace's expansion into new geographic markets and bolstering its commercial operations.

The substantial Series A round saw participation from a distinguished group of investors, including Coinbase Ventures, Valor Capital, Clocktower, FJ Labs, and Haun Ventures. Notable angel investors also joined, such as Ricardo Villela Marino, a significant shareholder in Itaú, Sean Neville, co-founder of Circle, and Anatoly Yakovenko, co-founder of Solana, underscoring the broad confidence in Trace's trajectory.

While the precise valuation remains undisclosed, sources indicate it represents a tenfold increase from the company's 2022 seed round. In that earlier financing, Trace raised $4.3 million at a $24 million valuation. This latest valuation, estimated to be around R$1 billion (approximately $193 million USD), positions Trace Finance as a rapidly ascending fintech unicorn within the Brazilian market and beyond.

Initially, Trace focused on facilitating the complex process for startups to repatriate investment capital from international funding rounds into Brazil. However, founder Bernardo Brites recognized the limitations of this niche and strategically pivoted the company towards the burgeoning cross-border payments sector. This segment now represents the primary revenue driver for the fintech, serving major global marketplaces and travel companies that require high-volume, frequent international money movement – a service often underserved by traditional Brazilian banks.

Trace differentiates itself by offering a sophisticated technological infrastructure, featuring streamlined APIs and deep expertise in foreign exchange. This allows the company to manage a multitude of transaction flows efficiently, a stark contrast to the more cumbersome, individualized approval processes typically encountered at larger financial institutions. Brites highlighted that many clients previously working with five or six banks now consolidate the majority of their cross-border operations with Trace, benefiting from both technological integration and significantly lower exchange rates.

Last year, Trace processed approximately $10 billion in foreign exchange transactions, serving around 700 clients, with startups still forming the bulk of its customer base. The company achieved breakeven in 2023 and has set an ambitious target to at least double its transaction volume this year. The strategic expansion into the Asia-Pacific region is a key objective, alongside a long-term vision to onboard major global payment giants like PayPal, Stripe, Mastercard, and Visa.

The founding team brings a wealth of experience from the cryptocurrency and blockchain space. Bernardo Brites previously worked with Decred and established a business assisting crypto exchanges with FX operations. Rafael Luz, a former partner with Brites, has a background with Transfero, while Leone Parise spent years at TrustWallet, a prominent wallet acquired by Binance. This deep understanding of digital asset flows and international finance provides Trace with a unique competitive edge in the global payments arena.