Sustainable L1 blockchain platform 5ire turns unicorn with $100M Series A fundraise
Layer 1 blockchain project focusing on sustainability, has raised $100 million in Series A funding (at a valuation of $1.5 billion) from UK-based conglomerate SRAM & MRAM, it said in a statement., a
5ire was founded by Indian-origin entrepreneurs Pratik Gauri and Prateek Dwivedi, along with Web3 financier Vilma Mattila, in August 2021.
The startup said the funds will be used for business expansion and extending 5ire’s footprint across Asia, North America, and Europe, with India as the hub of operations and core area of focus.
Pratik Gauri, CEO and Founder of 5ire, told The Decrypting Story: "It is an all-equity deal, with no tokens involved. Our testnet goes live in a month, followed by the mainnet in November, after which revenues will kick in. At this stage, our valuation is based on our patents, technology, and Proof-of-Benefit vision. We have also partnered with Intex to bring them into Web3, and are exploring MoUs with various Fortune 500 companies and government bodies to boost adoption of our technology."
5ire is also planning to increase its team size, which currently stands at over 100 employees.
Apart from the cash injection, Pratik said the SRAM & MRAM deal also helps 5ire leverage investor connects to build and establish relationships with several industries and governments across the world.
"We have been running pilots to get employee records on blockchain, and we believe we can achieve adoption at scale for many more uses cases across companies. We can't achieve our goals without connecting with large enterprises and sectors, and so we went ahead with SRAM & MRAM who can help us scale adoption," he said.
With the fundraise coming at a tumultuous and difficult time in the Web3 world, Pratik explained 5ire is not a crypto company, but a blockchain technology firm, and therefore, "is agnostic of the crypto bear market, and so are [our] investors".
Sailesh Lachu Hiranandani, Chairman of the SRAM & MRAM group, said, “We have great confidence in moving forward with investments in sustainable technologies. As a scientist, I have always believed in finding better ways to do things, and 5ire is committed to finding solutions for the 17 UN Sustainability Development Goals."
Last year, 5ire had raised a funding of $21 million in its seed round at a valuation of $110 million with participation from both private and institutional investors like Alphabit, Marshland Capital, Launchpool Labs, Moonrock Capital, amongst many other investors.
In February 2022, it secured a $100 million capital commitment from Global Emerging Markets (GEM) Global Yield LLC SCS (GGY) - an amount that can be drawn upon if and when 5ire goes public, clarified Pratik.
Edited by Teja Lele