Parcel, a crypto startup based in India, has raised $2.5 million in seed funding to build a treasury management protocol for decentralized autonomous organizations (DAOs).
Dragonfly Capital led the round, with Scalar Capital, A Capital, Compound, Consensys, 6th Man Ventures also participating. Angel investors including Cooper Turley of Audius, Leighton Cusack of PoolTogether, and Ryan Sean Adams of Mythos Capital also backed the round.
This was an equity round and Parcel's second raise, founder Anubhav Girdhar told The Block. Earlier this year, the startup raised $500,000 in a pre-seed round from TheLAO, Consensys, Volt Capital, LongHash, and others.
Parcel currently offers a tool for DAOs that helps them run payrolls, disburse grants, and airdrops, but only with mass payouts. Its clients include SynthetixDAO, Compound, and Aave, among others.
With fresh capital at hand, the startup is developing a protocol for DAOs that will help them build modules for treasury management with incentive mechanisms.
"We are starting with payments," said Girdhar. "We'll be coming out with our next major release in the coming months for asset allocation strategies with diversification, token buybacks, and capital efficiency."
Put simply, Parcel aims to help DAOs and open-source projects to automate their payments and treasury management through its network. Parcel is built on Gnosis Safe, a smart contract wallet that runs on Ethereum.
There are currently five people working for Parcel and the firm is looking to expand its team by hiring both technical and non-technical staff, said Girdhar.
Over the long term, Parcel will also decentralize its network and launch its own DAO and a token, said Girdhar.