Digital Wallet Startup Colu Raises $14.5 Million

Blockchain-based digital wallet startup Colu announced on Tuesday it has raised $14.5 million from Israeli holding company IDB Development Corporation Ltd.

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Colu uses blockchain technology to create localized digital currencies designed to be used within communities and encourage local spending. The company launched its digital wallet in early 2017.

Last month, Colu announced a plan to raise as much as $50 million through the initial coin offering of its own cryptocurrency, Colu Local Network (CLN). In November, the company said it intends to offer banking and financial services on its network, such as currency exchange, payments and lending services.

“Partnering with IDB group is a vote of confidence in cryptocurrencies and the role they could play in the retail market,” Amos Meiri, Colu’s co-founder and CEO, said in a statement.

“IDB believes that Colu will help to support the growth of blockchain technology as a real life payment method,” IDB Development Corporation CEO Sholem Lapidot said in a statement. “We strongly believe that crypto technology will play a key role in the future form of payment for goods and services.”

Founded in 2014 and headquartered in Tel Aviv, with an additional office in London, Colu reports approximately 100,000 users in four cities in the U.K. and Israel, and more than 85,000 monthly transactions. Colu has previously raised $12 million from investors including U.S.-based Spark Capital and Tel Aviv-headquartered Aleph VC.