[L-R] Fraction Co-Founders Shaun Sales (CTO) and Eka Nirapathpongporn (CEO)
Hongkong- and Thailand-based fintech startup Fraction has bagged US$3 million in a pre-Series A financing round led by East Ventures, it announced today.
The round also saw participation from Indonesia’s Emtek Group, Singapore-based Thakral (consulting and technology services company), V Ventures (Singapore), and unnamed regional investors.
With this, Fraction will establish its first fractional real estate offers powered by non-fungible tokens (NFTs) and distributed ledger solutions based on the Ethereum blockchain.
Besides, the company also plans to expand into various asset classes, services and countries, with the goal of democratising access to investments and money for millions of people who are now unable to participate in these wealth-generating activities.
Fraction previously secured an undisclosed seed round from conventional finance and technology investors such as Singha Ventures, Tanarra Capital, and Skystar Capital.
Also read: Demystifying NFTs and DeFi
Founded in 2018, Fraction enables people to own and transact pieces of real estate in the form of NFTs that have a “real-world legal link” to the property. Its offerings include ‘initial fraction offering’ (IFO) of real estate tokens, a secondary market trading platform of fractional tokens between investors, and related intermediary services covering the complete end-to-end journey.
“We can now enable true financial inclusion letting small investors participate in attractive asset classes that were previously inaccessible,” said Eka Nirapathpongporn, Co-Founder and CEO of Fraction.
With Fraction’s plug-and-play platform, individuals and companies can invest, sell and manage fractional ownership of anything — from a small stake in a city condominium, beachfront resort, or art piece, to managing a private fund, assets and investors.
As per a press statement, Fraction obtained the initial coin offering (ICO) portal license (subject to activation approval) from the Securities and Exchange Commission of Thailand (SEC).
Real estate is one of the largest markets on earth with a value of US$326 trillion in 2020, per a Savills report. London-born advisory and accountancy network Moore Global predicted that the tokenised real estate market would be on track to become a US$1.4-trillion market.
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Image Credit: Fraction
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