Strip Finance raises Rs 3.5 Cr in seed round to build collateralisation platform for NFTs
- ByAyushi Ray | October 1, 2021
Strip Finance raises Rs 3.5 Cr in seed round to build collateralisation platform for NFTs. As it looks to build its NFT platform and launch it on Binance Smart Chain, the startup maintains this will enhance liquidity in the NFT market by providing users with an option to retain ownership of NFTs and yet be able to derive liquidity. Varun Satyam, Co-founder of Strip Finance, said: “NFTs are gaining massive adoption from both retail users as well as institutions, but the collectors face liquidity challenges, often forcing them to sell off their prized assets. Going forward, NFTs will become the de-facto method of claiming ownership in the digital world and we want to be at the forefront with our offerings that increase capital efficiency in the space.”
Strip Finance was founded by Varun Satyam, Yuvraj Chhibber and Yash Jejani in 2021. The startup is creating a platform where anyone owning a desirable NFT can use it as collateral to borrow capital. The asset pricing data on the Strip Finance platform will be directly fetched from NFT marketplaces like Opensea, Rarible etc, and the startup will not be making changes to the pricing data. The lender can propose an interest rate and duration, which, when accepted by the borrower, transfers the NFT to an escrow. If the instalments are paid in the stipulated time, the borrower will get the NFT back. In case of defaults, the ownership rights are transferred to the lender.
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