Gelato, a network focused on smart contract automation, has raised $11 million in a Series A+ funding round led by Hack VC, with Kraken’s anticipated blockchain, Ink, joining as a customer.
The additional funding will allow Gelato to expand its platform, enabling startups and enterprises to launch their own blockchain-based applications.
This latest round involves noteworthy investor groups, including Animoca Brands, IOSG Ventures and Bloccelerate VC — bringing Gelato’s total funding to $23 million.
Hilmar Orth, a co-founder of Gelato, told Cointelegraph the funds would help the network improve user experience to support both Web3 and Web2 companies building scalable onchain applications.
“Gelato is committed to a future where every company operates onchain. Achieving this vision requires scalable and affordable access to blockspace for millions of businesses.”
Related: Gelato raises $11M from heavyweight backers for Web 3.0 automation
Kraken’s Ink joins Gelato
A notable development in the funding announcement is the addition of Kraken’s Ink, a new layer-2 (L2) blockchain solution, as a customer of the Gelato rollup platform.
The cryptocurrency exchange Kraken introduced Ink on Oct. 24, with an anticipated launch in early 2025. Ink aims to enable users to trade, borrow and lend without intermediaries.
Orth told Cointelegraph that Gelato “prioritizes” working with Web3 teams positioned “to advance adoption past its current status quo.” He said:
“[Kraken] are in a pole position to guide its crypto-savvy user base onchain, aligning well with Gelato’s mission of scaling onchain compute to the world.”
Source: Hilmar
Related: Smart contract automator Gelato brings liquidity management to Zerion
Addressing Web3 limitations and challenges
As the number of decentralized applications (DApps) increases, so does the need for scalable solutions. High transaction fees and slow processing times remain challenges.
Orth explained that “the belief that all applications can fit on a single blockchain is outdated” and instead sees a modular approach as “key to scaling Web3 applications.” He said:
“Like Web2 companies scaling across millions of servers, Gelato aims to scale onchain compute horizontally. Gelato’s platform will enable developers to achieve this scale while maintaining security and interoperability.”
Related: Gelato Network launches ‘G-UNI’ Uniswap v3 management token
Second $11 million raise in one month
On Oct. 8, Gelato announced it had raised $11 million in Series A funding from crypto venture firms, including Dragonfly Capital, ParaFi Capital and Aave founder Stani Kulechov.
The funds were raised to onboard more blockchains to the Gelato network and expand its 15-member team.
Gelato’s primary use case is its Ethereum smart-contract automation network, which addresses liquidity and volatility issues in cryptocurrency trading.
Magazine: The rise of Mert Mumtaz: ‘I probably FUD Solana the most out of anybody’