(Yicai Global) Sep. 17 -- XTransfer, a Chinese fintech startup that offers cross-border financial and risk management services for small and mid-sized businesses, has raised USD138 million.

The Series D financing round was led by D1 Capital Partners, XTransfer said in a statement today, adding that other existing shareholders also took part, without providing their names. Lighthouse Capital was the sole financial advisor.

“This round of financing is only the beginning of our quest to offer better services to customers,” said co-founder and Chief Executive Bill Deng, who has previously said the Shanghai-based company sees itself as ‘China's PayPal’ for cross-border merchants.

Founded in 2017 by six Ant Group alumni, XTransfer provides SMEs with safe, stable and cost-efficient cross-border financial services, including free opening of collection accounts, currency exchange and foreign exchange settlements, on par with those available to multinational corporations. This is done without any letup in meeting banks' AML and compliance requirements.

“Cross-border e-commerce is growing rapidly due to policy support,” the statement quoted Deng as saying. “We will keep promoting the digitalization of exports and aid the sector’s digital transformation.”

The proceeds from the firm’s latest fundraiser will be used to further upgrade XTransfer’s products and services, continue investing in big data and artificial intelligence, and bolster its anti-money laundering risk control system, it said.

XTransfer has offices in locations including Hong Kong, the United Kingdom, Canada, the United States, Japan, Australia and Singapore.

Editor: Futura Costaglione