Fraction, a fintech business located in Hong Kong and Thailand, has raised US $3 million in a pre-Series A funding round led by East Ventures, the company reported today.
Emtek Group of Indonesia, Thakral (consulting and technology services firm) of Singapore, V Ventures (Singapore), and other regional investors also participated in the round.
The fraction will use non-fungible tokens (NFTs) and distributed ledger solutions based on the Ethereum blockchain to launch its first fractional real estate offering.
In addition, the firm intends to grow into a variety of asset classes, services, and nations, with the objective of democratising investing and money access for millions of individuals who are now unable to engage in these wealth-generating activities.
Fraction has previously raised an unknown seed round from investors in traditional finance and technology, including Singha Ventures, Tanarra Capital, and Skystar Capital.
Fraction, which was founded in 2018, allows anyone to own and trade real estate using non-fungible tokens (NFTs) with a “real-world legal connection” to the property. Its services include a real estate token ‘initial fraction offering’ (IFO), a secondary market trading platform for fractional tokens between investors, and associated intermediary services that span the entire end-to-end journey.
Individuals and businesses may invest in, sell, and manage fractional ownership of anything using Fraction’s plug-and-play platform, from a tiny interest in a city condominium, seaside resort, or art piece to managing a private fund, assets, and investors.
“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.
According to a press release, Fraction received an initial coin offering (ICO) portal licence from Thailand’s Securities and Exchange Commission (subject to activation approval) (SEC).
According to Savills research, real estate is one of the world’s greatest markets, with a value of US$326 trillion in 2020. Moore Global, a London-based advising and accounting firm, anticipated that the tokenized real estate market will grow to US $1.4 trillion by 2025.
