CoAssets Limited (“CoAssets” or the “Company”) (ASX: CA8) is pleased to announce that it has made a RMB 1 million (approx. A$194,000) strategic investment in Fujian Da Xian Bing Internet Technology Ltd (“Da Xian Bing”). The investment, for 10% of Da Xian Bing, gives CoAssets access to a rapidly growing userbase of more than 300,000 users who are familiar with the concept of crowdfunding. In addition to the Company’s own operations in China, via its 40% joint venture with Fujian Yaosheng, the collaboration with Da Xian Bing will provide for a much greater market reach and penetration.
- Consideration of RMB1 million for 10% of Da Xian Bing and board appointment
- A leading product crowdfunding platform, Da Xian Bing enjoys numerous major channels for its business activities
- Da Xian Bing has a current userbase of more than 300,000 active users which CoAssets will be able to leverage
- Da Xian Bing expanding outside of Fujian Province to Shanghai, giving CoAssets with further geographical reach via the collaboration
While Da Xian Bing operates in the space of product crowdfunding and not investment crowdfunding like CoAssets, there is good potential and synergy for the overlap between the users. CoAssets conservatively expects to increase its user base in China by 300,000 within 6 months of the investment in Da Xian Bing.
Commenting on the strategic investment, CTO and Co-Founder Dr Seh Huan Kiat said: “I am very excited that we have managed to secure this partnership with Da Xian Bing. It is a synergistic relationship as both platforms can grow together faster and unlock greater value to all users of both platforms. From CoAssets’s perspective, this investment will help us significantly grow our reach within China. We will be rolling out a series of marketing initiatives to engage the Da Xian Bing users and we hope to convert most, if not all, of them to become registered investors of our CoAssets China platform.”
“With the 70,000 registered investors that we already have, we expect to see more than 370,000 registered investors by mid-2017 and potentially exceed the 400,000 registered investors market by end 2017. If we are able to maintain our investor conversion rate and investment amount at the average of about 2% and S$10,000 respectively, the amount of crowdfunding projects we can undertake will significantly increase.”
Key terms of the investment in Da Xian Bing:
- RMB1 million (approx. A$194,000) cash consideration for 10% equity, with 60% to be recouped from Fujian Yaosheng
- Additional performance based consideration of up to RMB4 million, linked to revenue and userbase hurdles
- CoAssets will appoint 1 of 4 directors to the board of Da Xian Bing
For more information about CoAssets, visit www.CoAssets.com