For every unicorn and soonicorn in Southeast Asia planning to list locally or overseas, there are several startups likely to remain private for a few years. For those holding shares in such companies, private exchanges provide a monetisation route through secondary market transactions.
Highlighting the growing activity in the secondaries market, private investment platform Fundnel recently said it received over 10 times more indicative offers in 2020 to sell than the previous year.
Private marketplaces that have a presence in Singapore
However, the recent financial performance of private marketplace operators has been a mixed bag, indicating there is a long way to go before secondary transactions become mainstream in the region. Hg Exchange, a company formed by Fundnel in partnership with PhilipCapital and Prime Partner in 2019, recently reported no revenue in 2020 and a net loss of $0.6 million.
Another private marketplace operator, ADDX (formerly known as iSTOX), reported its financial results in August. Its revenue and costs both went up in the financial year 2020, with its net loss widening to $11.7 million (see below).
Meanwhile, Capbridge Cornerstone (formerly known as 1Exchange Pte. Ltd.) reported revenue of $0.17 million in 2020, down from the previous year, while its profit after tax remained flat. The exchange is Singapore’s first central bank-regulated private securities exchange and holds a Recognised Market Operator licence to facilitate secondary trading. For more details about the company and its fundraising and financials, go to DATA VANTAGE.
Other updates from DATA VANTAGE
Singapore-based healthtech startup Neuroglee Therapeutics bagged $9.7 million in new funding this week, with the bulk of it coming from Openspace Ventures and EDBI. Last December, the firm had announced raising $2.3 million in pre-seed funding led by Eisai Co. Ltd, a global pharmaceutical company headquartered in Japan.
Singapore-headquartered Goama (also known as Go Games), which lets developers integrate games into their apps, received $240,000 in paid-up capital this week, of which $50,000 came from new investor Gamerforce Ventures.
Last-mile logistics startup Park N Parcel received $370,122 from entrepreneur Toh Eng Kui last week. The company, which allows users to have their online shopping haul delivered to registered residential and commercial parkers within a 1 km radius of their homes, has bagged $1.2 million in funding so far.
Pharma distribution network BuyMed secured $8.9 million in new funding this week led by South Korea’s Smilegate Investment. Other investors in the round include Cocoon Capital, Nextrans, B Capital and Sequoia Surge.
The financing comes over a year after the startup raised $2.5 million in pre-Series A funding from investors including Sequoia Capital India’s Surge early-stage accelerator program and Japan’s Genesia Ventures.
Resync Technologies, an energy management firm, received $1 million in funding from GGV Capital last week. Backed by SGInnovate, an investment arm of the Singapore government that focuses on early-stage deep tech investments, the startup has raised $1.8 million in equity funding so far.