AUDD self-funding as pre-seed round increased to meet investor demand: Novatti
ASX-listed Novatti, a leading fintech that enables businesses to pay and be paid, have provided an update on its AUDD stablecoin investment.
Novatti’s subsidiary AUDC Pty Ltd (AUDC), the holding company for AUDD, has closed its pre-seed funding round, with $600,000 raised. Novatti had previously advised that $300,000 had been raised but this round was increased to meet strong demand from industry partners.
The completion of this funding round results in AUDD obtaining a pre-money valuation of $2.4 million, with Novatti retaining an 80% interest.
Importantly, AUDC is no longer reliant on Novatti for funding, strengthening Novatti’s positive cashflow target.
AUDD has been designed and built as a 1-for-1 fiat-backed stablecoin natively issued on multiple leading blockchain networks. AUDD is available on Stellar, Ripple (XRPL), Ethereum (ERC-20) and now Solana. AUDD aims to enable efficient payments and services to support the ongoing transition and improvement of digital finance services.
AUDD derives revenue streams from:
– Fees when an AUDD holder redeems their AUDD stablecoins for fiat currency; and
– Interest on Assets Under Management
These revenue streams are both growing strongly in line with growth in Circulated Supply and On-chain Payments Volume from which revenue is derived. Circulating supply is now over $2.5 million and On-chain Payments Volume to date exceeds $25 million.
Executive Director Peter Cook said, “Novatti’s early investment in AUDD is showing great promise. Investor support for this raise saw the round increase from $300k to $600k, highlighting strong market interest and enabling faster development.”
Novatti’s CEO, Mark Healy said, “AUDD’s holding company is now self-funding, removing the operational cost from Novatti as we continue to simplify the business and pursue positive cashflow. With Novatti retaining an 80% interest in AUDD, we will continue to benefit from any upside growth.”