Newrl has launched tokenised based equity solutions for unlisted companies. The platform aims to enable tokenisation of equity to issue ESOPs, raise funds and improve governance through smart contracts, making startup equity a more liquid asset class. Additionally, this will provide greater access, liquidity and transparency to new age investors and startup employees.
For Swapnil Pawar, founder, Newrl, with the billion dollar industry based on the rate of growth of startups and opportunity to leverage equity, the company saw a need to replace a lot of informal contracts which are prone to fraud and misuse due to lack of transparency. “Launching this ‘trust based’ network in the country will help democratise access for small organisations, startups and even individuals. Additionally, 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 stated.
According to data, 2021 witnessed a net buyback of around Rs 3,000 crores of ESOPs by startups. Despite more than 100 unicorns in India over the last three years, 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 tokenisation market share in 2023. It seeks to use blockchain technology to create liquidity worth $500 million in unlisted stocks.
Newrl is a ‘trust network’ blockchain built for decentralised social finance founded by Swapnil Pawar. The company enables individuals and small businesses to access capital from their communities using their credibility and tokenised assets as a collateral. Newrl aims to break into multiple sectors as well as industries ranging from finance for securitisation and tokenisation solutions, real estate to tokenise properties, government institutions for smart contract solutions, car and gold financing, microbanking, agriculture and more.