A maritime fintech startup, Shipfinex has secured $1.5 million in seed funding to advance its blockchain-based platform.
The funding is aimed at transforming maritime finance as the platform will introduce Maritime Asset Tokens (MATs) to its investors.
The innovation is designed to enable fractional ownership of maritime assets, democratize investments, and enhance transparency.
The Chairman of Best Oasis Limited and leader of the funding round, Gaurav Mehta, remarked that the transformative journey will redefine how the world invests in maritime assets.
He said the maritime sector, traditionally dominated by large-scale investors, often presents significant barriers to entry, however, Shipfinex’s platform has so far attempted to break these barriers by leveraging blockchain technology to simplify asset management and facilitate transparent, secure transactions.
Shipfinex’s representative disclosed that the Shipfinex’s Maritime Asset Tokens (MATs) will enable a broader range of investors to participate in the sector by offering fractional ownership.
This approach addresses long-standing inefficiencies, making it easier to buy, sell, and trade maritime assets.
It was gathered that the funding will support Shipfinex’s platform development, with a strong focus on regulatory compliance.
Meanwhile, Shipfinex has added that it is collaborating with Dubai’s Virtual Assets Regulatory Authority (VARA) to align its operations with the evolving legal framework.
In addition to regulatory alignment, the funds will be used to build a marketplace for MATs, enabling maritime stakeholders to trade assets more efficiently and transparently.
Relevance of Shipfinex to the Nigerian Economy
Shipfinex’s innovative approach to maritime finance has significant implications for Nigeria’s economy, especially given the country’s reliance on maritime activities for trade and economic development.
In recent times, Nigeria is exploring the adoption of blockchain to address long-standing challenges, such as document fraud, supply chain inefficiencies, and lack of visibility in maritime operations.
This aligns with Shipfinex’s vision of leveraging blockchain to democratize investments in maritime assets.
As a major oil producer and exporter with an extensive coastline, Nigeria’s economy depends heavily on the maritime sector for importing goods, exporting natural resources, and facilitating international trade.
Benefits for the Nigeria economy
1. Democratization of Maritime Investments: Shipfinex’s Maritime Asset Tokens (MATs) can enable Nigerian investors, including small-scale and institutional participants, to invest in maritime assets without needing significant upfront capital.
2. Enhanced Efficiency in Asset Management: The platform’s blockchain technology simplifies asset transactions, making it easier for Nigerian stakeholders to manage, buy, and sell maritime assets.
This efficiency could reduce operational bottlenecks and promote faster transactions in Nigeria’s busy ports, such as Apapa and Tin Can Island.
3. Boost to Local Maritime Industry: Nigerian shipping companies and logistics providers could use Shipfinex’s platform to raise funds or trade assets transparently. It would allow smaller players to expand operations, modernize their fleets, and compete internationally, supporting economic growth and job creation.
4. Alignment with Nigeria’s Digital Transformation Goals: Shipfinex’s blockchain-based platform complements Nigeria’s increasing emphasis on digital technologies. With initiatives like the National Digital Economy Policy, integrating blockchain into maritime finance aligns with the country’s push for innovation and financial inclusion.
5. Facilitation of International Trade: As Shipfinex collaborates with regulatory authorities like Dubai’s VARA, its platform could facilitate secure and transparent cross-border transactions.
This is crucial for Nigeria, which relies on maritime trade for its oil exports and imports of essential goods.
6. Opportunities for Nigerian Fintech Ecosystem: The rise of Shipfinex could inspire collaborations with Nigerian fintech startups, boosting the country’s reputation as a hub for fintech innovation.
It could also pave the way for integrating maritime finance with existing financial services, such as mobile payments and digital wallets, further enhancing financial inclusion.
