Private market exchange ADDX bags $20m in expanded pre-Series B

Global private market exchange ADDX has raised $20 million in an expanded pre-Series B round led by KB Securities, a subsidiary of Korean banking group KB Financial Group.

Oi-Yee Choo, CEO of ADDX

The round, which saw fresh capital from new and existing investors, began in May 2022, when ADDX secured $58 million from new investors Stock Exchange of Thailand (SET), Hamilton Lane and UOB.

The latest equity round brings total funds raised by ADDX since 2017 to around $140 million.

Part of the newly raised capital will go towards growing ADDX Advantage, the company’s wealth management platform launched earlier this year for private banks, brokerages and family offices.

The investment will also be used to fund the firm’s global expansion, which includes plans to enter more markets both by working with partners and by obtaining new licenses.

KB Securities joins more than a dozen financial institutions that have become shareholders of ADDX. These include Singapore Exchange (SGX), Stock Exchange of Thailand (SET), Hamilton Lane, Temasek subsidiary Heliconia Capital, UOB, Tokai Tokyo Financial Holdings, the Development Bank of Japan (DBJ), Kiatnakin Phatra Financial Group, Krungsri Bank and Hanwha Asset Management.

ADDX opens up access to private credit and other fixed income investments, private equity, hedge funds and private real estate through the use of blockchain and smart contract technology. Using this technology, the exchange has brought minimum subscription sizes down from $1 million to $5,000 while allowing secondary trading.

Oi-Yee Choo, CEO of ADDX, says: “ADDX has become the focal point for Asian financial institutions that believe in building a new technology-driven infrastructure for private markets, to overcome inefficiencies in the traditional model.”