Japanese fintech Goldex enters joint venture to promote blockchain in India
TOKYO, NNA – Japanese fintech venture Goldex Co. has joined hands with a local partner to promote its blockchain technology to cryptocurrency exchanges and microfinance providers in India.
Goldex and Parth Infosystems Pvt. Ltd. will jointly establish Goldex-Parth Crypto Pvt. Ltd. in June to capitalize on the growing cryptocurrency trade in the South Asian country, Kazuya Sakamoto, CEO of Goldex, told NNA on Monday.
Goldex will hold a 47.5 percent stake in the joint venture with a capital investment of $1 million. Founded in 2006 in Gurugram, Parth will own 49.5 percent. An individual Japanese investor will hold the remaining 3 percent, said Sakamoto.
Goldex-Parth Crypto expects to make $60 million in sales in its first year.
The business will combine Goldex’s expertise in the development of sophisticated blockchain systems with Parth’s experience in pier-to-pier digital payment services, he said.
Established in 2011, Tokyo-based Goldex has been developing digital payment solutions and cryptocurrency exchange systems. As part of its expansion overseas, it will introduce its technology in India where a growing ecosystem for cryptocurrency and blockchain will drive demand.
The joint venture unit in Gurugram in the northern state of Haryana will develop applications for microfinance services with the use of cryptocurrency, he added.
Last month, India’s supreme court ruled that the Reserve Bank of India’s ban on cryptocurrency trade in 2018 was unconstitutional, paving the way for the banks to service crypto firms and fintech business to grow.
“We could expect rising demand in cryptocurrency trade and benefit from first-mover’s advantage,” Sakamoto said.
Half of Goldex sales which stood at 520 million yen ($4.8 million) in year 2018 to March 2019 came from outside Japan. The latest fintech venture aims to boost overseas sales significantly as India is their most important market, Sakamoto said.
Goldex teamed up with PT. Visionet Digital Indonesia last November to serve the fintech market in Indonesia, he added.