Unlisted Assets Revolutionizes the Investment Landscape with Tech-Enabled Platform and Transparent Transactions

CXOToday has engaged in an exclusive interview with Manish Khanna, Co-Founder, Unlisted Assets.

1. Briefly explain Unlisted Assets and its unique offerings.

Unlisted Assets is India’s first tech enabled facilitation platform providing a transparent buyer-seller interaction/negotiation, a safe bank escrow-based transaction and an automated transaction flow for buying / selling Unlisted Shares/ Pre-IPO. The platform launched the Retail and Institutional window for facilitating transactions in pre- defined secondary of unlisted companies and are also enabling monetization opportunities for investors & employees in unlisted companies including pre-IPO and start-up companies where it is tough to get liquidity.

2. What factors should be considered when evaluating investment opportunities in the unlisted market?

When evaluating investment opportunities in the unlisted market, consider factors such as Company fundamentals, growth potential, market size and potential, competitive landscape, valuation,risk assessment, due diligence, investment structure and terms and legal and regulatory considerations.

3. Can you explain the concept of liquidity in the unlisted market and its implications for investors?

Liquidity in the unlisted market refers to the ease with which assets can be bought or sold. In this market, liquidity is generally lower than in the public market. Investors may face challenges in finding buyers or securing exit opportunities. This longer investment horizon may require a higher rate of return or accepting a lower valuation for investments. Thorough due diligence and diversification are important considerations. While the unlisted market offers potential for higher returns, it comes with certain risk. Unlisted Assets with its tech enabled platform helps both buyer and seller to overcome such challenges.

4. What are some emerging sectors or industries that are attracting significant private equity and venture capital investments?

India has witnessed a remarkable growth story and a booming economy, which has led to a surge in investments. With its large population, expanding middle class, and a growing consumer market, India presents significant opportunities for investors.

1. Technology, Health-Tech and Software: Investments in technology companies, including software development, artificial intelligence, cloud computing, cybersecurity, fintech and health tech solutions continue to be robust. The rapid pace of innovation and disruptive potential of these technologies make them attractive to investors.The intersection of technology and healthcare has led to substantial investments in telemedicine, digital health platforms, health analytics, medical devices, and wearable technologies
2. Education Technology (EdTech): The EdTech sector has witnessed a surge in investment as the demand for online learning platforms, digital content, educational software, and skills development tools continues to rise. The COVID-19 pandemic has further accelerated this trend.
3. Financial Technology (FinTech): The FinTech sector continues to attract significant investment, driven by innovations in areas such as digital payments, blockchain technology, peer-to-peer lending, robo-advisory services, and InsurTech.

5. How do ESOPs differ from other employee benefit programs, such as stock options or restricted stock units (RSUs)?

ESOPs (Employee Stock Ownership Plans) differ from other employee benefit programs, such as stock options or restricted stock units (RSUs), in a few key ways:

1. Ownership Structure: ESOPs provide employees with actual ownership in the company, typically through the allocation of shares or stock units. In contrast, stock options give employees the right to purchase company stock at a specified price in the future, while RSUs grant the right to receive company stock once certain vesting conditions are met.
2. Purchase vs. Grant: ESOPs are typically purchased by employees, often at a discounted price, through contributions from their wages or other company contributions. Stock options, on the other hand, are granted to employees without an upfront purchase requirement, and RSUs are typically granted outright.
3. Voting Rights: With ESOPs, employees usually have voting rights attached to their allocated shares, enabling them to participate in corporate governance and decision-making processes. In contrast, stock options and RSUs typically do not grant voting rights unless the shares are acquired through exercising options or settling RSUs.
4. Dilution Impact: ESOPs can result in dilution of ownership for existing shareholders if new shares are issued to employees. Stock options and RSUs, however, generally do not cause immediate dilution since they are typically granted from existing authorised shares.
5. Valuation: ESOPs are often tied to the overall value or performance of the company. The value of stock options and RSUs, on the other hand, is usually linked to the company’s stock price or specific performance targets.

6. Can you share any notable achievements or milestones your startup has accomplished within the unlisted market?

Some of the recent milestones we accomplished are:

• We have successfully achieved a transaction volume of over 1 Crore through our retail platform, with over 5000 transactions completed
• We have a registered user base of over 30K.
• We have on-boarded over 50 institutions on our B2B platform which was launched recently.
• We work with over 100 offline unlisted brokers and wealth firms.

7. How do you leverage technology or innovation to stay competitive in the unlisted market?

We have leveraged technology and innovation to the maximum in our organisation to stay competitive in the unlisted market in the following ways:

1. Tech-Enabled Platform: We have developed a cutting-edge, tech-enabled platform that streamlines the investment process for our clients.
2. Deal Sourcing and Networking: We leverage technology to expand our network and enhance deal sourcing capabilities. Our platform connects us with a wide range of industry professionals, entrepreneurs, and investment partners, facilitating access to a broader pool of potential investment opportunities.
3. Due Diligence and Risk Management: Our platform is well equipped to handle and manage the Frauds and KYC process of all the users who come to the platform.
4. Investor Communication and Engagement: We leverage technology to foster transparent and effective communication with our investors.
5. Market Insights and Education: Technology enables us to provide our clients with valuable market insights, educational resources, and thought leadership content.

By embracing technology and fostering a culture of innovation, Unlisted Assets stays competitive in the unlisted market, offering our clients a technologically advanced platform, data-driven insights, efficient processes, and enhanced investor experiences.

8. Can you discuss your growth strategy and how you plan to capture market share in the unlisted space?

Unlisted Assets aims to position itself as a leading player in the unlisted market, capturing market share by delivering exceptional value, leveraging technology, fostering strong relationships, and staying ahead of industry trends.

1. Differentiated Value Proposition: We differentiate ourselves by offering a unique value proposition to our clients. This includes a tech-enabled platform that provides a seamless investment experience, comprehensive due diligence, access to a diversified portfolio of unlisted assets, and transparent reporting.
2. Expansion of Investment Network: We actively expand our network of industry professionals, entrepreneurs, and investors to enhance deal flow and broaden our investment opportunities. This involves building strategic partnerships, leveraging technology for networking, and engaging with key stakeholders in the unlisted market ecosystem. By nurturing strong relationships and staying connected with relevant players, we increase our chances of accessing exclusive investment opportunities.
3. Continuous Innovation: We remain committed to continuous innovation to stay at the forefront of the unlisted market. This includes investing in technology advancements, data analytics capabilities, and research tools.