While real-time payments are becoming the norm for individuals and businesses, that's not yet the case for cross-border transactions, and Carriza wants to change that, starting in Latin America.
Founded in 2021 by Ezra Kebrave, an American entrepreneur who now lives in São Paulo, Brazil, Caliza offers an alternative to sending money via SWIFT, which is standard in the Americas but can take days to settle.
Instead, Caliza offers an API and front-end payment system that uses cryptocurrency stablecoins (specifically Circle’s reserve-backed USDC) and an existing real-time payments network to enable instant transfers and provide U.S. digital dollar accounts to international merchants.
The startup did not disclose the names of its clients but said they are banks and fintech companies keen to better support businesses doing international trade and operations like remittances and payroll.
The company just raised an $8.5 million funding round led by Initialized, which marks the first Latin America-focused investment for the venture capital firm founded by Alexis Ohanian, Harjeet Taggar and Garry Tan.
Kebrav himself doesn’t have a background in crypto. In his previous job at Visa, he saw companies needing faster transactions, especially in Latin America. He gave the example of a company doing near-shoring in Mexico. If production can’t start until an upfront payment is paid, every day of delay is costly.
The Mexico mention is no coincidence: Cariza plans to launch there in the fall, a few months later than planned. Kebrab didn't say why, but said the company is focused on meeting regulatory and compliance standards, which includes obtaining licenses.
Currently, most of Cariza's 10-person team is based in Brazil, and with the new funding, the startup plans to double its headcount as it follows through on its previously announced local launch.
Brazil is no newcomer to real-time transactions: Its digital payments system, Pix, similar to India's UPI, is so popular that even coconut sellers accept it, Kebulab said.
Cross-border transactions, however, are a different matter: Europe has largely solved that problem with the Single Euro Payments Area (SEPA), but the Americas are less integrated, making Caliza less likely to be disrupted by an equally superior alternative to SWIFT.
Cariza itself aims to support existing banks, not disrupt them. “There will always be government-regulated intermediary banks,” Kebrab said. But he thinks his company will stick around, too. That's where the name comes from: “Cariza” means limestone in Spanish, a reference to the durable material that many buildings are made of.
Currency fluctuations have been a concern in Latin America, with the Brazilian real having fallen about 13% against the U.S. dollar this year, including 6% in June alone.
That volatility dovetails well with Cariza's mission to “make instant, stable liquidity accessible to everyone, regardless of location or circumstance.” The location piece also suggests that Latin America is just the beginning: Kebrab is the son of immigrants from Ethiopia and Eritrea, so Africa could be a logical next target.
The company previously raised $5.3 million in 2021. The new round was led by Initialized, with participation from Abstract Ventures, Class 5 Global, Digital Currency Group, Kraynos Capital, New Form Capital, Quona, and angel investors including executives from fintech companies.