KLDX: Revolutionizing Fundraising and Investment in Malaysia

In today’s episode of Biztech’s Investor Conversation show, Selvarany Rasiah , the founder and CEO of KLDX (Kapital DX Sdn Bhd ), shed’s light on the innovative features and goals of the new Malaysian exchange. KLDX is a regulated investment and fundraising platform built on blockchain technology, aiming to address the funding gap for startups and provide investors with access to private market assets. The interview highlighted key aspects of KLDX, including its inclusive approach, selection process for listed companies, cost-effectiveness, and strategic partnerships.

Here are the key takeaways:

KLDX: An Introduction:

Selvarany introduced KLDX as one of the two initial exchange offering platforms registered by the Securities Commission in Malaysia. It functions as a regulated investment and fundraising platform built on blockchain technology. It allows both traditional and non-traditional financial assets to be used for fundraising, providing a broad range of businesses and investors with opportunities.

Democratizing Investing:

KLDX’s main aim is to address the funding gap for startups, growth-stage companies, and project financing in Malaysia, explained Selvarany, which is estimated to be around 90 billion ringgit for SMEs by 2022.

Selvarany highlighted that KL DX offers companies the opportunity to raise funds by issuing security tokens, which represent underlying real assets or financial instruments. Private market assets, such as shares in private companies, private funds (VC/PE, real estate), and intellectual property, can be used for fundraising. This opens up investment opportunities for a broader range of investors.

Accessibility and Ticket Sizes:

She emphasized that KLDX strives to make investing accessible to individuals, hence why KLDX offers investment opportunities with lower ticket sizes compared to traditional markets. Depending on the nature of the product and the issuer’s preferences, investments can start from as low as 1,000 ringgit. This lower barrier to entry enables a broader range of investors to participate.

Rigorous Screening and Selection Process:

Selvarany gave a run down on KLDX’s comprehensive screening and selection process for companies looking to be listed on the platform. This includes sourcing investment opportunities, conducting due diligence, evaluating the company’s industry, technology, financials, regulatory compliance, and corporate governance. KLDX aims to select promising companies that have the potential to deliver value to investors, ensuring the platform’s integrity and enhancing investor confidence.

Competitive Pricing and Value Proposition:

Compared to traditional markets and similar platforms, Selvarany stresses that KLDX offers cost-effective listing options. The streamlined and automated processes on the blockchain-based platform make it more efficient.

She also highlighted the special services that KLDX provides such as advisory services and a range of professional advisors to assist companies in structuring their fundraising needs, alleviating the burden on entrepreneurs and allowing them to focus on their businesses.

Market Reach and Liquidity:

Selvarany emphasized that KLDX aims to establish strategic partnerships and collaborate with domestic and international investors to enhance its market reach and liquidity. KLDX seeks to attract a broad range of investors and companies. This broader reach can help address liquidity concerns often faced by other platforms.

Future Goals and Innovation:

Selvarany shared about KLDX’s plans to list its first company in the third quarter of the year and continue building a pipeline of interesting companies. It will focus on market awareness programs, product innovation, strategic partnerships, cybersecurity measures, and evolving its platform based on investor needs and demands. KLDX aims to be at the forefront of capital market innovation, delivering value and confidence to investors and businesses.