Adelaide, Australia, Jan. 10, 2024 – Kasu, a Real World Asset (RWA) business lending protocol, has successfully secured $3 million in funding to support its innovative RWA lending platform in the decentralized finance (DeFi) space. The funding round garnered significant support from key opinion leaders (KOLs), industry angels, and selected Web3 investment syndicates, underscoring the widespread backing for Kasu’s mission to revolutionize RWA lending and risk management technology.
Kasu is a joint venture between Faculty Group, renowned for its expertise in Web3 and DeFi, and Apxium Technologies (Apxium), acclaimed for its award-winning innovation in FinTech and traditional finance (TradFi). The partnership between these two industry leaders presents a unique opportunity to introduce a groundbreaking approach to RWA lending.
Luke Lombe, Founding Partner of Faculty Group, explained the rationale behind the JV, stating, Existing RWA lending platforms have paved the way for DeFi investors to access a wide range of real-world yield opportunities. However, the lending component remains a commoditized product with inherent risk. Kasu is addressing this challenge by leveraging industry-defining accounts receivable automation financing technology to tackle the root cause of borrowing, namely late debtor collections, and then strategically lending to an optimized debtor book. This proprietary technology allows Kasu to deliver the most risk-optimized RWA yields in the entire DeFi landscape.
Jeremy Coombe, Founder and CEO of Apxium, expressed excitement about bringing their technology to the DeFi space, highlighting the symbiotic nature of the collaboration. Coombe said, Apxium currently manages over $2 billion in annual invoice transaction volume across multiple countries. Throughout our seven-year history, we have never incurred a single dollar in losses during our invoice lending activities. We are thrilled to tap into the vast DeFi liquidity reserves while offering exceptional risk-adjusted returns to investors.
The newly raised capital will be deployed to further enhance Kasu’s innovative platform, setting new standards for RWA lending by leveraging proprietary technology that optimizes businesses’ cash flows to improve credit risk. This approach ultimately results in superior risk management and higher-quality yields. Kasu’s platform integrates automated debt recovery mechanisms and robust structured credit to deliver the most optimized risk-adjusted private credit RWA yields within the DeFi space.
Central to Kasu’s innovation is the utilization of Apxium’s multi-award-winning SaaS+FinTech innovation platform, which provides intelligent Receivables and Payables Financing solutions for prestigious accounting and law firms and their clients. This platform has demonstrated its ability to reduce accounts receivable administration and debtor days by up to 50%, significantly minimizing the risks associated with businesses’ debtor positions prior to advancing funds against outstanding invoices.
Apxium boasts an impressive track record, having received numerous prestigious awards and accolades at both the State and Federal Government levels in Australia. This includes recognition as the ‘Most Innovative Business’ and ‘e-Commerce Exporter of the Year’ at the 2023 South Australian Premier’s Business and Export Awards. Additionally, the Australian Trade and Investment Commission named Apxium one of the ‘Best and Brightest Fintechs in Australia.’
Kasu stands to benefit from Apxium’s robust client base, which includes some of the world’s largest and most respected accounting firms. These firms, part of the global ‘top 10′ accounting brands, operate in countries such as the United States, Canada, the United Kingdom, and Australia, and generate over $2 billion USD in annual invoicing. For Kasu, this represents an estimated $150 million invoice financing opportunity in the first year of operation, with the potential to fund an additional $7.5 billion in invoices through these firms’ existing client books.
The inherent stability of the accounting industry, which remains relatively safe for lending purposes and uncorrelated to crypto markets and traditional economies, makes it an attractive prospect for Kasu. Accounting services are always in demand, regardless of real-world recessions or crypto market downturns. This uncorrelated nature positions Kasu as a significant differentiator within the DeFi space, offering investors access to low-risk and stable real-world businesses.
Himanshu Yadav, General Partner from Woodstock and a seed investor in Kasu, expressed confidence in the future of RWA lending and emphasized the value of the Kasu team’s experience in both DeFi and asset tokenization. He stated, Invoice financing and lending from real-world businesses will become a core part of long-term sustainable yields for liquidity providers in DeFi as the industry continues to evolve and mature. With their extensive experience spanning both worlds, the Kasu team is well-positioned to build the foundation for this future.
The achievement of securing $3 million in funding not only highlights the growing importance of RWA lending in DeFi but also the recognition of Kasu’s unique and transformative platform. With the ongoing development of Kasu’s RWA lending technology, the DeFi ecosystem can expect to see increased access to risk-optimized yields and enhanced risk management in the future.
For more information on the innovative RWA lending platform offered by Kasu, please visit Kasu’s official website or reach out to their media team.
About Kasu
Kasu is a cutting-edge Real World Asset (RWA) business lending protocol that brings together DeFi investors, institutional lenders, and business borrowers to facilitate on-chain yield. By democratizing access to real-world yield opportunities that are typically reserved for sophisticated investors, Kasu aims to deliver superior risk management and higher-quality yields through its proprietary technology, which optimizes businesses’ cash flows.
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