Acudeen Technologies – based in Singapore with offices in Myanmar and the Philippines – seeks to guarantee more security for smaller businesses looking beyond more traditional means to do business. With targets set on a $2 trillion dollar US market opportunity Acudeen is reportedly focusing on how exporters can benefit from the platform by selling their receivables on it.
Acudeen is branded as “an inclusive environment for small businesses who are having a hard time getting financing using traditional means”. This movement of its online receivables marketplace onto the blockchain coincides with a secure invoice factoring solution using Acudeen’s custom cryptocurrency. This will make it easier for these small exporters to access working capital. As Magellan Fetalino – the company’s co-founder and CEO – said “It’s becoming harder even for medium-sized businesses to use letters of credit to get access to financing due to issues both in the market and regulatory environment.”
Small businesses struggling to obtain a letter of credit can join the Acudeen platform in order to sell their exports. After a relatively quick know-your-customer process the business and its receivables are listed on the Acudeen platform. Potential buyers and financiers are made instantly aware of the receivables when they are posted online and these banks, financing companies or persons with a high net-worth can then buy these receivables at a discounted rate. “Because of this, the SME now gets their money in advance as working capital and can use it for the growth of their business,” Fetalino says. “On the other hand, you have funders who have made money from the transaction.”
Acudeen Technologies launched its online platform in 2017 and enjoyed significant success. The company on boarded 400 SMEs in one month and has partnerships with two of the largest banks in the Philippines; RCBC and UnionBank. Moving its highly successful online platform onto blockchain surely seems like a risky maneuvre but Magellan says that the smart contracts offered by Blockchain guarantee authentic transfers and stops multiple sales of the same items.
“Peer-to-peer platforms work best when the people who are part of it trust the system,” said Magellan. “What blockchain brings to the table, with the two technologies we’re using – Stellar and Hyperledger – is trust and reliability into the whole ecosystem, especially at the pace we’re growing.”
The use of cryptocurrency means that the transfer and purchase of assets across borders is easier than it would be using more traditional methods. Acudeen’s currently stable token the Cryptofiat matches the coin’s value to its fiat equivalent. It “eliminating the need to undergo a tedious and expensive process” explained the firm in a statement.
Through its initial coin offering (ICO) on April 9 Acudeen hopes to raise $35 million so that the company may expand further across Asia. Though there were initial difficulties in finding investors outside of the Philippines and Myanmar Acudeen is currently taking investments from several investors in Hong Kong, Dubai and Singapore. By 2019 Acudeen Technologies hope to expand their investor range to ten more countries.