US-Based Circle To Acquire Peak XV-Backed Tazapay

SUMMARY While the two parties did not disclose the size of the deal, reports suggest that the transaction is an all-stock deal valued at nearly $400 Mn With this, Circle will leverage Tazapay's banking relationships, local payout rails and customer base to accelerate the adoption of its stablecoin product Founded in 2020, Tazapay offers B2B cross-border payment solutions for enterprises. It currently claims to clock $25 Bn in annualised payment volume and boasts 60+ banking partners Existing backer and US-based crypto platform Circle Internet Group has signed a definitive agreement to acquire Peak XV Partners-backed B2B cross-border payments startup Tazapay. While the two parties did not disclose the size of the deal, CoinGape reported that the transaction is an all-stock deal valued at nearly $400 Mn. The deal is expected to close in 2027, subject to customary closing conditions and regulatory approvals. The acquisition will accelerate Circle's mission to build the infrastructure layer for global digital finance, the US-based company said in a statement. 'Combining USDC with Tazapay's world-class banking relationships, local payout rails, and institutional customer base will accelerate worldwide USDC adoption,' Circle cofounder Jeremy Allaire elaborated on the rationale for the deal. Founded in 2013 by Allaire and Sean Neville, Circle Internet Group is building the infrastructure for payments and financial services using blockchain and stablecoins. Its flagship product is USDC, a dollar-linked stablecoin. Founded in 2020 by Rahul Shinghal, Aayush Singhania and Kanupriya Sharda, Tazapay offers cross-border payments infrastructure for enterprises. The Singapore-based startup provides a single API through which businesses can collect money, hold it in multiple currencies, convert it and pay suppliers globally. Tazapay claims to clock over $25 Bn in annualised payment volume, 60+ banking and fintech partners, local payout rails in over 100 markets. Notably, the startup claims that about 60% of its transaction volume already includes stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, usually by being pegged to a traditional currency such as the US dollar. The acquisition comes five months after Tazapay raised $36 Mn in its Series B round, which saw participation from Circle, Peak XV Partners, GMO Venture Partners and January Capital. The latest deal gives exit to Peak XV, which first invested in the startup back in 2023. However, Tazapay is not the first non-Indian startup in Peak XV's portfolio. Since its split from Sequoia Capital in 2023, the VC firm has continued to invest in the broader Southeast Asia (SEA) as well as opportunities beyond the region. Peak XV's current portfolio comprises names such as Supabase, PostHog and Vapi, which are building primarily for the US enterprise market. It has backed many overseas fintech companies such as Funding Societies, SUNRATE, Shift, Tabby and Qoala so far.