Private market exchange ADDX has raised US$58 million in a Pre-Series B funding bringing the total raised to US$120 million since it was started in 2017.
The latest round was participated by new investors including SET Venture Holding, a subsidiary of the Stock Exchange of Thailand, United Overseas Bank, Nasdaq-listed alternative investment firm Hamilton Lane and Krungsri Finnovate, the corporate venture capital arm of Krungsri (Bank of Ayudhya PCL).
These new investors join existing ones including Singapore Exchange (SGX), Heliconia Capital, Development Bank of Japan (DBJ), Japan Investment Corporation – Venture Growth Investments (JIC-VGI), Tokai Tokyo Financial Holdings, Kiatnakin Phatra Financial Group and Hanwha Asset Management.
Choo Oi-Yee, CEO of ADDX says the latest round of funding from these investors is a “ringing endorsement” for the company’s business model and that they aren’t capital partners but “strategic partners” as well.
“They have much to contribute in the form of expertise, ideas, market experience and business networks, and ADDX looks forward to adding value to their businesses in return. This Pre-Series B round sets ADDX up strongly for long-term success,” she adds.
SET, for one, is the second stock exchange to join as an investor after SGX. From Choo’s perspective, this is part of a larger global trend over the past two years of exchanges joining forces in a new capital market landscape that emphasises continuity between the public and private markets.
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“The backing of UOB and Krungsri, as well as the private markets investment firm Hamilton Lane, underscores the confidence we have built among important players in the ecosystem,” adds Choo.
"Joining hands with ADDX which is a multi-asset digitised securities investment platform regulated by MAS will contribute to the great development of digital assets in Thailand,” says SET president Pakorn Peetathawatchai.
Leong Yung Chee, UOB’s head of group corporate banking describes the partnership with ADDX as complementary to the bank’s regional footprint across Asean and Greater China.
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“We are constantly looking for innovative solutions to further strengthen our product offerings, and the tie-up with ADDX will certainly help us to do so. Our corporate clients will be able to tap new fund-raising channels, while our accredited investor clients will gain access to alternative investments in tokenised assets.”
According to ADDX, the newly-raised funds will help it scale up its operations and help it beef up its position as Asia’s largest private market exchange.
Besides coming in with the funding, the new investors will also partner with ADDX on specific projects that will help the exchange expand into new business areas, geographies or market segments.
ADDX is regulated by the Monetary Authority of Singapore (MAS) as a digital securities exchange. It uses blockchain and smart contract technology to tokenise and fractionalise private market investment opportunities ranging from pre-IPO equity, private equity and hedge funds, as well as bonds, reducing minimum investment sizes from US$1 million to US$10,000.
ADDX says that by doing so, it can bring the benefits of private market investing to individuals, while lowering the cost and fundraising threshold for issuers.
