editorial
ADDX, the Singapore-based private market exchange, has announced its plans to expand into the Gulf Cooperation Council (GCC) and Middle East/North Africa (MENA) regions. This strategic move aims to address the funding gap between private entities in need of financing and capital providers, and create more financial opportunities for unlisted enterprises, including micro, small, and medium-sized enterprises (MSMEs) and startups.
The expansion of ADDX’s blockchain-powered investment platform will enable easier access to growth capital for these businesses, which are seen as crucial in driving strategic sectors and sustainable economic growth in the targeted regions.
Global financial institutions, including renowned financial exchanges, national banks, and asset managers, are already backing ADDX’s trading platform. These institutions are leveraging the platform to facilitate access to high-growth private enterprises.
ADDX operates under the regulation of the Monetary Authority of Singapore and has raised $140 million since its establishment in 2017. The funds come from prestigious institutions such as Singapore Exchange, Heliconia Capital (a subsidiary of Temasek), the Development Bank of Japan, and KB Securities.
The expansion into the MENA region will not only provide more growth capital opportunities for companies on the brink of an initial public offering (IPO), but will also attract investments from Asia and other global financial markets.
Additionally, the move will offer new investment options in rapidly-growing Asian companies for local fund managers, thereby strengthening economic ties between the Asia-Pacific (APAC) and MENA regions.
Danny Toe, ADDX’s Founder and Group CEO, highlighted the potential of securely introducing private markets to capital investment in enhancing the financial frameworks of the regions. He sees this as an opportunity to foster the growth of strategically significant MSMEs and strengthen economic interlinkages between APAC and Middle Eastern markets.
Manuel Jaeger, ADDX’s Business Development Head, emphasized the transformative power of blockchain-driven platforms in reshaping the perception of private market investments. He stated that the company’s MENA strategy aims to collaborate with financial institutions, regulators, and regional leaders to ensure seamless capital flow in private markets, benefiting investors, private entities, and the global economy.
Enabling more fluid capital movement in private markets has the potential to increase the attractiveness of the region’s markets for high-demand startups in sectors like artificial intelligence, sustainable agriculture, and green buildings.
To date, ADDX has showcased over 80 deals on its platform, partnering with industry leaders like Hamilton Lane, Singtel, and Temasek-owned Mapletree. With a significant 60% of investment subscriptions conducted through its mobile application, the platform offers a range of asset classes, including private equity, hedge funds, and venture capital.
Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it
