Coinbase, MEVP Invest in Middle East Crypto-Asset Startup Rain

(Bloomberg) -- Rain Financial Inc., which operates a crypto-asset platform used mainly in the Middle East and North Africa, raised $6 million, securing backing from Coinbase Inc., the biggest cryptocurrency exchange in the U.S.

The Series A funding round was led by venture-capital firm Middle East Venture Partners, Rain Financial said in a statement. Rain Financial declined to disclose its valuation.

• Other investors include:
  • Saudi Arabian private-equity investor Vision Ventures
  • Abdul Latif Jameel Fintech Ventures
  • Chicago-based CMT Digital Venture LLC
  • Dubai-based DIFC Fintech Fund

The four-year-old startup’s Rain Management business was the first licensed crypto-asset platform in the Middle East when it secured approval from the Central Bank of Bahrain to operate in 2019, according to the statement.

Crypto-platforms have been given a boost by a quadrupling in the price of Bitcoin, the largest cryptocurrency, in late 2020, which has been accompanied by roller-coaster volatility.

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Last year saw “tremendous growth in the number of users and the transaction volume on Rain,” co-founder Yehia Badawy said in an interview. “We’ve seen increased adoption across the board from retail clients, high-net-worth individuals, and institutional clients.”

Rain Financial plans to use the funds for a regional expansion and to grow its engineering team, Badawy said. It’s also in talks with regulators in the Middle East to widen its reach, he said.