Adenasoft Completes Pre-IPO Investment Worth $33m

Adenasoft, a developer of FINTECH solutions, successfully completed a large-scale pre-IPO investment in Korea. The shares were sold by the majority shareholder’s existing holdings of 1.23 million shares for 39 billion KRW (33 million USD).

The deal put the valuation on the company at over 150 billion KRW (125 million USD). In other words, the deal completed at approximately KRW 29,000 per share. The company did not issue any more shares for funding as Adenasoft boasts steep growth in revenues and earnings.

It is for this reason why many of the well-known Korean securities firms, asset management companies, and venture capital firms flocked to participate in the pre-IPO deal. Adenasoft fit the bill for the investors chasing opportunities with clear exit plans and global exposure.

Seven companies participated in the pre-IPO investment including Atinum Investment, Korea Investment Partners, Premier Partners, Company K Partners, Time Folio Asset Management, Cornerstone Equity Partners, and Korea Investment & Securities.

It is estimated that each invested from 3 billion KRW to 10 billion KRW. According to Adenasoft spokesperson, the company opened its doors in August 2016 and has experienced tremendous growth ever since.

The company took advantage of the advancement in the global FinTech markets and earned the reputation as one of the pioneers in the industry.

In just three years, it has grown into a company worth well over hundred million USD in valuation. It is gearing up for an IPO in 2019 in the Korean stock market.

Adenasoft develops and distributes online operations, Customer Relationship Management (CRM) Customer Relationship Management (CRM) Customer Relationship Management (CRM) is a way for brokers to manage the firm’s contacts with existing and potential clients. The firm is using data available from the customer’s trading activity to determine an appropriate course of action when aiming to retain or onboard the customer.This technology is also an effective tool in managing a company's interaction with both current and potential clients. CRMs use data analysis regarding clients’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.One noteworthy component of a CRM is the systems it relies on to help compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media. CRMs are very important for brokers in helping them learn more about their targeted audiences and how to best cater to their needs.Why CRMs Have Reshaped the IndustryBrokers use different CRM systems in order to maximize their potential sales or provide support via live chat, telephone or email. In general, CRM systems also provide brokers with useful data on how to execute their marketing campaigns and how to better service the needs of their clients.Historically speaking, firms had been allowed more latitude to be proactive, though recent regulatory tightening has limited these means of retaining clients and providing them with incentives. The data analysis which companies do typically provide the broker with cues about when is a good time to remind a client to make a new deposit and therefore increase the company’s turnover.CRM technology has become a premium amongst brokers as competition has increased in the FX industry. The outbreak of the Coronavirus Pandemic in 2020 has also created larger swaths of potential clients, making technology such as CRMs even more instrumental to brokerage operations. Customer Relationship Management (CRM) is a way for brokers to manage the firm’s contacts with existing and potential clients. The firm is using data available from the customer’s trading activity to determine an appropriate course of action when aiming to retain or onboard the customer.This technology is also an effective tool in managing a company's interaction with both current and potential clients. CRMs use data analysis regarding clients’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.One noteworthy component of a CRM is the systems it relies on to help compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media. CRMs are very important for brokers in helping them learn more about their targeted audiences and how to best cater to their needs.Why CRMs Have Reshaped the IndustryBrokers use different CRM systems in order to maximize their potential sales or provide support via live chat, telephone or email. In general, CRM systems also provide brokers with useful data on how to execute their marketing campaigns and how to better service the needs of their clients.Historically speaking, firms had been allowed more latitude to be proactive, though recent regulatory tightening has limited these means of retaining clients and providing them with incentives. The data analysis which companies do typically provide the broker with cues about when is a good time to remind a client to make a new deposit and therefore increase the company’s turnover.CRM technology has become a premium amongst brokers as competition has increased in the FX industry. The outbreak of the Coronavirus Pandemic in 2020 has also created larger swaths of potential clients, making technology such as CRMs even more instrumental to brokerage operations. Read this Term), foreign exchange trading, cryptocurrency trading, and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. Read this Term solutions that enable FinTech companies to seamlessly integrate IT and finance.

Clients are global financial institutions and most of the sales are reported to be from overseas. Investors are expecting Adenasoft to generate over 12 billion KRW (10 million USD) in sales with 8 billion KRW in profits. The company says it expects the growth rates to accelerate both for the sales and earnings.

For more information on Adenasoft, please visit: www.adenasoft.com or email: info@adenasoft.com.

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