unlisted companies: Newrl launches blockchain-based tokenized equity solutions for unlisted companies

Synopsis

The platform will enable tokenization of equity to issue ESOPs, raise funds and improve governance through smart contracts, making startup equity a more liquid asset class.

Despite more than 100 unicorns in India over the last 3 years alone, trading in unlisted equity is mostly realised when a company goes in for an IPO.New Delhi: Decentralized finance blockchain Newrl has launched tokenized-based equity solutions for unlisted companies. This will be India’s first Web3 innovation for ESOP solutions for startups.

The platform will enable tokenization of equity to issue ESOPs, raise funds and improve governance through smart contracts, making startup equity a more liquid asset class.

Along with this, it will provide greater access, liquidity and transparency to new age investors and startup employees. In 2021, startups took ESOP buyback worth Rs 3,000 crore.
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Despite more than 100 unicorns in India over the last 3 years alone, trading in unlisted equity is mostly realised when a company goes in for an IPO.

Based on the growth rate and the industry size of $15 billion today, Newrl aims to target 10% of the tokenization market share by 2023. It aims to use blockchain technology to create liquidity worth $500 million in unlisted stocks.

“As ESOPs lack liquidity, employees do not give it a priority, as they can gain value only upon buyback or the company goes public. Newrl has launched these solutions to address issues faced by unlisted companies,” it said in a release.

The company will implement smart contracts on blockchain by decentralizing the process of managing ESOPs and a reliable way of exercising them. The offering is aimed at simplifying the process with just a few simple clicks.

The process will make it effortless for the employees and partners to carry out their transactions and vest their money from the allocated shares and stocks at any point of time while delivering the intrinsic trust for the investors and employees.

Swapnil Pawar, Founder, Newrl said given the billion-dollar industry based on the rate of growth of startups and opportunity to leverage equity, we saw a relevant need to replace a lot of informal contracts which are prone to fraud and misuse due to lack of transparency.

“This will streamline the process in which ESOPs and shares are allocated by startups and unlisted companies, encouraging owners and employees to opt for solutions which are safe, simple yet tangible,” he added.

Newrl aims to break into multiple sectors as well as industries ranging from finance for securitization and tokenization solutions, real estate to tokenize properties, government institutions for smart contract solutions, car and gold financing, micro banking, agriculture and more. Presented By

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Updated: 04/26/2022 — 18:00