Relai Raises $12 Million in Series A Funding

Relai, a self-custodial app focused on buying and selling bitcoin, has successfully raised $12 million in a Series A funding round.

The funding round was led by Ego Death Capital, a bitcoin-only venture capital fund, which contributed $4 million. Other investors included Plan B Bitcoin Fund, Timechain, and Solit Group. Relai began preparing for the fundraising in June, had initial discussions in August, and officially closed the round earlier this month, according to co-founder and CEO Julian Liniger.

The funding was structured as plain vanilla equity, similar to Relai’s previous fundraises. The total funding for Relai now amounts to approximately $20 million, with its valuation rising from $60 million (pre-money) to $72 million (post-money). In March 2023, Relai was valued at $20 million after raising $4.5 million in a seed extension round.

This valuation increase aligns with Relai’s rapid growth, which has been propelled by the rising price of bitcoin this year. Liniger stated that the app has facilitated $650 million in bitcoin investments since its launch in 2020, with $450 million of that occurring this year alone. He anticipates reaching $1 billion in total investment by 2025.

Currently, the Relai app has 450,000 downloads, 140,000 active users (users who made at least one transaction in the last four years), 70,000 registered users, and 35,000 monthly active users. Downloads are increasing by 20,000–30,000 per month, with expectations to hit 1 million downloads by 2025.

Relai Business Segments

Relai also caters to the business sector with its Relai Business segment, launched about a year ago. This segment serves around 200 SMEs and 250 high-net-worth individuals, generating $30 million in trading volume. The segment is growing rapidly at a rate of 10–20% month-over-month.

Revenue is generated through transaction fees on bitcoin purchases and sales. While profitability has been achieved in some months this year, Liniger expects Relai to be consistently profitable next year.

Since its inception in 2020, Relai has been growing at a rate of 2–3x year-over-year. The app expects further expansion once it secures a Markets in Crypto-Assets (MiCA) license in the first quarter of 2025, which will facilitate growth across EU countries while building on its Swiss home base.

Currently employing 40 people, Relai plans to double its staff next year, hiring for roles across product, development, marketing, growth, legal, and compliance. Liniger reaffirmed the company’s commitment to a Bitcoin-only philosophy, stating, “There is no second best.”

The Funding Newsletter: Stay updated on the latest crypto funding news and trends with my bimonthly newsletter, The Funding. It’s free. Sign up here!