Zoth
Sector
Round Size ($USD)
$2,500,000.00
Post Valuation
$20,000,000.00
Stage
Existing Commitment
Deal Type
Deal Stage
Deal Status
Ecosystem
Founder Name
Deal Source
Min Investment
Discord Thread Link
Website
Investment Memo / Deck
AMA
Data room
Date Approached
Oct 16, 2023
Description
Zoth is an ecosystem of solutions that bridges decentralized finance (DeFi) with real-world asset classes, (RWAs) enabling liquidity for traditionally illiquid assets.
TGE date
Twitter
Description
Zoth creates secured, fixed yields by bringing RWA to DeFi providing financing for SMEs. Lenders lend stable coins to SMEs for invoice factoring, asset leasing, and inventory financing. Lenders receive the ZOTH token which can generate additional yield from staking.
Assets are sourced from 1) fintech lending companies, 2) neo banks, and 3) global trade financing/invoice funding. Countries include India, Singapore, Vietnam, Malaysia, the Philippines, and Thailand.
Zothʻs advantages:
- Fixed, secured, stable yields > 12%
- short duration liquidity
- local asset origination partnerships
- RWA risk management framework
- utility for lenders
- lower borrowing cost by 20%
Business Model
Income is derived from processing fees, liquidity fees, and platform fees.
- Direct source invoice
- 33% of invoice yield → Zoth
- Zoth pays for
- insurance fee 0.8% of invoice yield
- validator fee 0.5% of invoice yield
- Asset originator invoice
- 20% of invoice yield → Zoth
- Zoth pays for:
- validator fee 0.5% of invoice yield
Risk mitigation:
- KYC / AML with 3rd party verification
- 20% over collateralization of the invoice value
- First loss insurance coverage
- Custodial services of funds
- Diversified borrower base - geographic, industry
Traction
Launched MVP in July 2023. They have 25+ partners including Fidelity and FIS.
- August 2023 → TVL 400k, LiFi and Fuse Capital
- Sept 2023 → TVL 600k, Fun Fair Ventures and Atlendis
- est Dec 2023 → TVL 1.6mm, dewhales capital, Circle, Digital Assets Capital
Go-to-Market
- Regulatory compliant setup for borrowing and lending through the NBFC
- Indiaʻs only Asset Tokenization startup participating in the regulatory sandbox
- Partnerships with EximPe, KredX, Zetwerk
Target audience:
- Accredited investors
- Hedge funds
- DAO treasuries
Founders
- Pritam Dutta, co-founder & ceo
- Koushik Bhargav, co-founder & cto
- Parshavv Om Jain, coo & legal
- Murali Nandini, head of partnerships
- Prathyush Prasad, head of strategy & risk
Deal
$2.5mm at $20mm valuation seed
Raised $600k in Feb 2023 from SOSV, Graviton, Brinc, Chainlink.
Tokenomics
Deck
Commitment
Angels
- Kunah Shah (founder of CRED), Sidd Ganhi (GrowX Ventures), Ray Wong (Asymmetry Capital), + 10 others
VCs
- BRINC, Rbit Startups, Gravity
Accelerators / Incubators:
- Stanford Blockchain Academy, Graviton, Foundership, Chainlink Build, Fidelity FCAT, and FIS Incubation
Feedback
Investment Memo