Folks Finance secures $3.2m in Series A to advance crosschain DeFi solutions
Folks Finance, a DeFi platform specialising in lending, borrowing, and managing digital assets across multiple blockchains, has announced it raised $3.2m in an oversubscribed Series A funding round.
The funding round brings the company’s valuation to $75m.
The funding round was led by Borderless Capital and included contributions from SOVO Ventures, Mapleblock, and Algorand Ventures, among others. This investment brings Folks Finance’s total funding to $6.2m, following a successful seed round in 2022.
Folks Finance provides a comprehensive suite of tools that enables users to manage their portfolios across various networks. Its xChain app is central to the company’s strategy, offering seamless crosschain lending, borrowing, and trading across networks like Avalanche, Base, Ethereum, Arbitrum, and BNB Chain. The platform plans to integrate additional networks in the near future, further enhancing its multichain ecosystem.
With the new funding, Folks Finance aims to expand its xChain app, addressing liquidity fragmentation issues by unifying liquidity across isolated ecosystems. The platform leverages technologies such as Chainlink CCIP, Wormhole, and Circle CCTP to enable users to deposit assets on one blockchain and borrow on another, providing unparalleled crosschain flexibility and efficiency.
Since its mainnet launch in 2022, Folks Finance has grown rapidly, boasting over 15,000 active wallets monthly and achieving a total value locked (TVL) peak of $220m. The platform’s suite includes lending, borrowing, swaps, liquid staking, and a fiat on/off ramp, providing users with a robust alternative to traditional centralised exchanges.
Amit Mehra, partner at Borderless Capital, said, “We’ve been proud supporters of Folks Finance since the very beginning. With a strong foundation in place, we see tremendous opportunities ahead for them to scale and expand their business. They’re tackling one of DeFi’s most pressing issues: the fragmentation of liquidity across isolated ecosystems. They are redefining interoperability by offering users an intuitive and seamless way to manage assets across multiple networks. This approach will drive a new standard in crosschain liquidity; we are excited for a future full of growth and innovation for Folk.”
Folks Finance CEO Benedetto Biondi said, “The future of DeFi is crosschain, and with the launch of our xChain App, we’re empowering users with unprecedented crosschain flexibility and efficiency. This round of funding will allow us to continue innovating and expanding our vision of a truly multichain DeFi hub.”