Relai Funding Update

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

The round was led by Ego Death Capital, a bitcoin-only venture capital fund, which invested $4 million. Other investors included Plan B Bitcoin Fund, Timechain, and Solit Group. The startup began preparing for fundraising in June, initiated 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 previous fundraises, said Liniger. This round increases Relai's total funding to approximately $20 million and raises its valuation from $60 million (pre-money) to $72 million (post-money). In March 2023, Relai was valued at $20 million when it raised $4.5 million in a seed extension round.

Relai's valuation growth corresponds with its rapid expansion, driven by bitcoin's price rise this year. Liniger reported that the app has facilitated $650 million in bitcoin investments since its 2020 launch, with $450 million of that total coming in this year alone. He anticipates this figure to grow to $1 billion by 2025.

The Relai app has achieved 450,000 downloads, with 140,000 active users (those having made at least one transaction in four years), 70,000 registered users, and 35,000 monthly active users. Downloads are expected to increase by 20,000–30,000 per month, aiming for 1 million downloads by 2025.

Relai Business

Relai also offers services through its Relai Business segment, launched about a year ago. This segment caters to around 200 small and medium-sized businesses and 250 high-net-worth individuals, generating $30 million in trading volume since its inception. Liniger highlighted a 10–20% month-over-month growth for this segment.

Relai earns revenue through transaction fees on bitcoin transactions. While it has achieved profitability in certain months this year, Liniger anticipates that Relai will "definitely be profitable the entire next year."

Since its inception in 2020, Relai has been growing 2–3x year-over-year. The app is poised for further expansion upon securing a Markets in Crypto-Assets (MiCA) license, expected in the first quarter of 2025, which will help it expand across EU countries from its Swiss base.

Currently employing 40 people, Relai plans to double its workforce next year, focusing on recruitment across product, development, marketing, growth, legal, and compliance.

Relai remains committed to a Bitcoin-only philosophy, with Liniger stating, "There is no second best," underlining the firm’s focus on the foremost and largest cryptocurrency.

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