Singapore-based private market exchange ADDX has raised US$58 million in a pre-series B funding round.
The funds will allow ADDX to scale its operations as it builds on its position as Asia’s largest private market exchange.
ADDX, a regulated digital securities exchange, uses blockchain and smart contract technology to tokenise and fractionalise private market opportunities such as pre-IPO equity, private equity and hedge funds, as well as bonds.
The exchange claims to reduce minimum investment sizes from US$1 million to US$10,000 and bring efficiencies that deliver the benefits of private market investing to individuals, while lowering the cost and fundraising threshold for issuers.
The latest investment brings total funds raised by the exchange to around US$120 million since its inception in 2017. New investors coming on board as shareholders include SET Venture Holding, a subsidiary of the Stock Exchange of Thailand, as well as UOB, Hamilton Lane and Krungsri Finnovate.
They join the likes of Singapore Exchange (SGX) as investors in ADDX. SET will also be able to name a board member as part of its investment.
On top of the funding, the new investors will partner with ADDX on specific projects that will help the exchange expand into new business areas, geographies or market segments.
Several strategic ADDX initiatives will also benefit from the fresh capital, including the recent launch of private market services for wealth managers, dubbed ADDX Advantage, ongoing efforts to bring on board world-class general partners as issuers, as well as product innovations that will bridge traditional and digital finance.
Oi-Yee Choo, the new chief executive officer of ADDX, said: “ADDX is on a mission to democratise the private markets. The sizeable investment from SET, UOB, Hamilton Lane and Krungsri serves as a ringing endorsement for ADDX’s business model, the team we have assembled and the broader vision we have for transforming the capital markets and the wealth management industry.”
“The new shareholders aren’t just capital partners, but strategic partners too. 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.”
Choo added: “SET is the second stock exchange to join as an investor after SGX, and 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.”
“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.”
Pakorn Peetathawatchai, president of SET, commented: “Joining hands with ADDX, which is a multi-asset digitised securities investment platform regulated by the Monetary Authority of Singapore, will contribute to the great development of digital assets in Thailand.”
“We look forward to working with the ADDX team and we strongly believe that the collaboration will provide extensive experience, knowledge and more opportunities to Thai capital markets’ stakeholders through the international digital capital markets platform.”