Hashflow Reaches $400M Valuation With $25M Series A Round

Decentralized finance (DeFi) firm, Hashflow co-founded by Varun Kumar and Vinod Raghavan has announced via a Medium blogpost that it has raised its valuation to $400 million after it successfully secured $25 million in a Series A funding round. 

The Series A round enjoyed participation from a few returning investors which include Electric Capital, Dragonfly Capital Partners, LedgerPrime, and Balaji Srinivasan. Other fresh investors who joined the round are Jump Crypto, Wintermute Trading, GSR, Kronos Research, Altonomy, Coinbase Ventures, Kraken Ventures, and many other angel investors.

The trading platform completed its seed round in April 2021 when it raised $3.2 million. Hashflow which is known to offer excellent DeFi trading services plans to infuse the capital to continue its offerings centered around its request-for-quote (RFQ) model. 

The Hashflow RFQ Model

The RFQ model optimizes for seamless interoperability, guaranteed price execution, and MEV protection. 

Asset and structured products which were considered impossible to trade on DeFi rails are allowed on this RFQ model. Hashflow also intends to utilize the fund to expand its team and hire new talents.

The RFQ model used by Hashflow differs from the Automated Market Marker (AMM) used by other DeFi trading platforms. The AMM unlike the RFQ model is prone to a high transaction fee and slippage. Uniswap is an example of an automated market marker also known as a liquidity reserve or liquidity pool.

Obviously, the new fund puts the decentralized trading platform in a strong capital position from which it can continue to build and scale. This will be regardless of market conditions which at the moment are facing a downturn. 

“Maximizing liquidity for our users is our prime objective, and to be able to count the best VCs as well as the best market makers in crypto among our investors goes a long way in terms of delivering against that objective”, the blog post read.

Kanav Kariya, the president of Jump Crypto, known as a major backer of innovative protocols pointed out that his team is excited to be part of an impressive firm like Hashflow. He acknowledged the one-of-a kind technology which the platform harnesses and the splendid growth which Hashflow has achieved in a short while and on a lean budget.