Acudeen Technologies is to open an initial coin offering (ICO) on April following a token pre-sale. The ICO will fund the Singapore-based company in its expansion across Asia. The company hopes to raise $35 million with this ICO.
Using a customised cryptocurrency Acudeen seeks to provide a secure invoice factoring solution. The company has branded itself “as an inclusive environment for small businesses who are having a hard time getting financing using traditional means.”
Small businesses can approach Acudeen and following a know-your-customer process can list its receivables on Acudeen’s online platform as opposed to struggling to find a letter of credit when it’s about to sell its exports. “The use of letters of credit is becoming less and less,” says Fetalino, co-founder and CEO. “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.”
Using Acudeen’s online platform small businesses can list their receivables and funders are instantly notified when a new company is put on the platform. Banks, financial companies and individual investors with a high net-worth can then buy these receivables using the CryptoFiat – Acudeen’s own custom cryptocurrency. “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.”
With over 400 SMEs on board in just a month and partnerships established with RCBC and UnionBank – two of the Philippines biggest banks – Acudeen are looking to blockchain technology to further secure and boost their business. The use of smart contracts guarantees authenticity and that multiple sales of the same items will not occur. With the CryptoFiat coin set to it’s fiat equal the transactions become easier with fewer cross-border obstacles such as currency exchange getting in the way. Though Acudeen is only open to investors from Dubai, Hong Kong and Singapore at the moment it is seeking to expand its investor range to ten more countries by 2019.