Newrl launches India’s first blockchain based tokenized equity solutions for unlisted companies

Newrl will target 10% of the startup tokenization market share in 2022

Will facilitate ESOPs through smart contracts – making them valuable for employees and easy to issue for companies

Will also enable easier crowd-funding for companies and better governance for investors

Newrl, a leading public blockchain for mainstream decentralized finance (DeFi),  has launched tokenized based equity solutions for unlisted companies. This will be India’s first Web3 innovation for ESOPs 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. This will provide greater access, liquidity and transparency to new age investors and startup employees.

2021 witnessed a net buyback of close to INR 3,000 crores* of ESOPs by startups. 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 in 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 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. 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 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 as well.

Swapnil Pawar, Founder, Newrl regarding the need for the new solution, says, “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. Launching this ‘trust based’ network in the country will help democratize access for small organisations, startups and even individuals. Furthermore, 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.”

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, microbanking, agriculture and more.

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About Newrl

Newrl is a ‘Trust Network’ blockchain built for decentralized social finance founded by Swapnil Pawar. Swapnil has over 18 years of experience in the intersection of technology and financial services. He is an IIT Bombay and IIM Ahmedabad graduate and is an expert in the field of blockchain technology, macroeconomics, decentralized finance and quantitative investing.

The company enables individuals and small businesses to access capital from their communities using their credibility and tokenized assets as a collateral. Newrl simplifies legally robust tokenization of assets like stocks, properties, and startup equity. It also enables individuals and small businesses to tokenize new forms of assets like personal creditworthiness, social media revenue inflows, patents, invoices, brands, warehouse receipts, etc. For illiquid assets, Newrl supports a mutualization mechanism to facilitate liquidity, also helping their use as collateral in a loan. Newrl focusses more upon the real-world assets, with backing from physical assets which reduces the scope of many types of fraud (eg. double lien frauds, etc.), furthering the belief in ‘trust network’.