BanQu, a local startup that aims to lift people out of extreme poverty by connecting them to global supply chains, has raised just under $1.4 million in a planned $7 million round of funding, according to an SEC filing.
Minnetonka-based BanQu bills itself as both a "for-profit and for-purpose" software business that utilizes blockchain technology to help entrepreneurs and small-business owners across the world. By assisting the unbanked or underbanked interact with the global economy, BanQu helps these individuals develop a credit history and economic identity.
BanQu estimates that 60 percent of the world's 2.7 billion unbanked people own mobile phones. These devices serve as a connection point for people to get their business involved with the global economy. BanQu allows the unbanked to set up a profile that lets them connect with the supply chains they participate in. As they start accumulating a transaction history on the BanQu blockchain, the unbanked also develop a trackable, vetted financial and personal history.
In a release from earlier this year, BanQu CEO and Co-Founder Ashish Gadnis said that the company's platform is live in a dozen countries, including Brazil, India, Somalia, South Africa and the U.S. BanQu's ultimate goal is to help lift 100 million of the world's 2.7 billion unbanked and underbanked people out of extreme poverty by 2023.
Founded in 2015, BanQu has already cemented partnerships with several large international businesses, including Anheuser-Busch InBev – the world's largest brewing company. In June 2018, BanQu began a pilot program with ABInBev working to connect 2,000 Zambian farmers to BanQu's mobile platform. During the growing season, farmers used the platform as they harvested and sold an estimated 2,000 tons of cassava, a starch used in beer making.
ABInBev doubled down on its involvement with BanQu by participating in the startup's new round of funding. The investment came from ZX Ventures, the innovation arm of ABInBev. New York-based ZX funds businesses that address commercial and consumer needs surrounding supply chain transparency, traceability and efficiency in emerging markets. The terms of ZX's investment were not disclosed. BanQu could not be reached for comment regarding the funding.
"Over the last year, we have implemented the BanQu platform with over 4,000 of our direct farmers in Zambia, Uganda and India," Maisie Devine, global director for the 100+ Accelerator at AB InBev, said in a release. "Through this work, we are helping to create a digital ledger of farmers' transactions that will create an economic identity and enable access to financial services. This will ultimately allow farmers to grow their business and improve the livelihoods of their families and communities."
BanQu's recent round was raised from 10 investors, according to the filing. Last year, the company landed another $2.5 million from 20 investors.
