Singapore-based crowdfunding platform SDAX Financial, formerly known as Minterest, has raised $24 million in the first tranche of its Series B round led by Singapore port and cargo service provider PSA International, The Straits Trading Company, and New Horizon Global, the company said in a statement.
In May this year, digital assets exchange SDAX and digital investment platform Minterest merged to form SDAX Financial.
The fresh funds will boost SDAX Financial’s real estate investment offerings. It listed its first real estate security token for secondary trading on its platform earlier in December.
The company said real estate is a “prime asset class for tokenisation” as investors are familiar with it and it is illiquid in nature. Fractionalising ownership without liquidating the real estate asset will lower the entry barriers for investors, it said.
DealStreetAsia first reported the round in November.
Singapore Exchange-listed The Straits Trading Company is an investment firm with the majority of its portfolio in real estate, including a 22.1% in ARA Asset Management, which is set to be acquired by ESR Cayman.
ARA Asset Management was co-founded by John Lim, who previously held a majority stake in Minterest in May 2020 with ARA prior to the merger between SDAX and Minterest.
New Horizon Global, also an investor in ARA, is a company linked to property developer SingHaiyi’s Huaidan Chen.
SDAX Financial said in the statement that PSA’s investment “reflects its commitment to co-create and invest in ESG solutions for ports, supply chains and climate-conscious cargo owners”.
“Through collaborating with SDAX Financial’s integrated digital financial services platform, we believe we can further PSA’s sustainability initiatives for supply chain partners and cargo owners, and make a positive impact towards the decarbonisation of global supply chains, underpinned by clear market mechanisms.,” said Tan Chong Meng, group chief executive officer of PSA International in a statement.