South East Asia’s first real estate crowdfunding platform has crossed the S$1million revenue mark in their first year of operations.
CoAssets was officially launched in July 2013 and as at early August 2014 the company’s revenue had exceeded $S1million.
According to CEO Mr Getty Goh, this figure is a combination of collected income as well as MOUs signed with the various developers planning to use the platform.
“Profit wise, we are within the healthy range of between 10 per cent and 20 per cent. So the results are very encouraging, as it validates our belief that there is a strong demand for crowdfunding services in the real estate sector,” says Mr Goh.
The start-up was funded under the i.JAM Reload scheme managed by the Media Development Authority (MDA), and incubated by Expara IDM Ventures.
While operating as a real estate crowdfunding site, the business model of CoAssets differs from similar sites in the U.S. and Europe as the company doesn’t directly get involved in deals or collect monies from funders.
“We are purely a market place and any arrangement is between the opportunity providers (i.e. developers) and the funders,” says Mr Goh.
“Akin to what eBay is doing for the auction market by being a market place for users who want to auction their products, CoAssets is a market place for developers and/or property owners who are interested to get their projects crowdfunded.”
Based on Alexa ranking, a matrix used by some online marketers, CoAssets is within the top three highest ranked real estate crowdfunding sites globally, plus the top site in Asia.
“Considering that we are still largely self-funded, we believe that we can bring CoAssets to the next level when we have professional investors on board,” says CoAssets CTO, Dr Seh Huan Kiat.
“Looking at CoAssets’s growth trajectory, we believe that the team has hit on a burgeoning market and we are helping them secure their Series A funding to capitalize on the momentum.”
CoAssets plans to expand its presence into other Asian markets including Malaysia, Hong Kong and potentially China.