Tuotuo Digital, a cross-border fintech, has completed a new round financing of tens of millions of CNY, which was invested by Dewu Capital. Proceeds from this funding round will be mainly used to accelerate the building of its capacity on cross-border B2B payment risk control and develop its underlying tech to further serve the payment and financial technology needs of cross-border transactions of micro, small and medium-sized enterprises (MSMEs).
Founded in 2020 in Beijing to aid cross-border payments, Tuotuo Digital has gained support from investors, closing its first fundraising in May 2021 and the second in December 2021.
What were the executive’s thoughts on the funding?
“In the first stage of China’s online payment development history, players focus on infrastructure building and providing services to banks, while in the second stage, players provide money collection and payment services to firms which generate fees during their business operation, in the third stage, service provider like Alipay and WeChat are dominating the market by offering a wide variety of services,” said Timo Zhou, President, Tuotuo Digital.
“In my view, the cross-border online payment sector is still at the first two stages,” explained by Zhou. Data from market research firm Analysys shows that China’s third-party cross-border payment market has reached RMB 1.12 trillion in 2021, up 23.02% year-on-year.
“Tuotuo Digital aims to develop a platform for firms with overseas business, providing not only payment, but also other value-added services, like risk control services at the buyer side, financing, and insurance,” he said. Tuotuo Digital has served over 50,000 MSMEs, facilitating billions of transactions, adding over 5,000 corporate clients each month recently.