- Dropfoods currently operates the largest network of smart vending machines in Vietnam, which already offers the functionality of using mobile money for product purchases and other transactions including paying for bills
- With the proceeds from its ICO, Dropfoods will install 1,000 new machines that will enable smart transactions using its own Cryptocurrency, Dropcoins
- Dropfoods is backed by Sugar Ventures, one of Southeast Asia’s largest venture builders with 11 startups built from scratch in its portfolio to date
Dropfoods, the largest smart vending machine operator in Vietnam, today announced the launch of an Initial Coin Offering (ICO) scheduled for September 21, 2017 to raise US$9 million with the issuance of its own Dropcoins tokens. With the proceeds from its ICO, Dropfoods will install 1,000 new machines that will enable smart transactions using Dropcoins.
The ICO issued by Dropfoods will be the first of its kind that is supporting an existing operational business outside of the blockchain space, with a solid business plan to utilize the fundraising proceeds from the ICO. Dropfoods currently operates in more than 40 locations in Vietnam, supporting automated retail operations for fast-moving consumer products.
The key value proposition of Dropfoods lies in the scalability of its business model and plug-and-play infrastructure combining its physical assets (vending machines) and digital assets (mobile application) to install a payment gateway that can advance financial inclusion in a region where more people hold smart phones than bank accounts.
Backed by one of Southeast Asia’s largest venture builders with key stakeholders from Japan, South Africa and Singapore, Sugar Ventures, Dropfoods aims to build the region’s largest network of physical touch points for cross-border transactions and digital remittance. Dropcoins may be converted into government-issued fiat currency for cash withdrawal at the Dropfoods vending machine or to make purchases on the vending machines and on the Dropfoods App. This conversion will be set according to the aftermarket coin value exchange rate.
Sugar Ventures, one of Southeast Asia’s largest specialized venture builders, is focused on nurturing greenfield ideas that will transform the region’s emerging economies. Unlike traditional accelerators or incubators, Sugar Ventures seeks to unearth great start-ups from the ideation stage, provide seed funding, support their organic growth and work towards a flourishing exit in the process.
Dr Mark Hon, Co-founder of Dropfoods and Sugar Ventures, commented: “We are excited by the prospects of launching a token that can be a game-changer for the state of play for the financial inclusion of the region’s emerging marketplace. To enable cross-border transactions and digital remittance at close to zero transaction costs will make full use of the digital opportunity presented by the region’s relatively high mobile penetration and enable the underbanked to be included in the formation of a cashless society.”
John Fearon, Co-founder of Dropfoods and Sugar Ventures, commented: “Dropcoins will revolutionize the region’s digital marketplace and is a true example of financial technology that applies emerging technologies such as blockchain and artificial intelligence to transform the current financial landscape, clearly distinguished from the realm of ‘techfin’ where you would be just applying technology to enhance existing financial capabilities.”
Sugar Ventures is founded by Dr Mark Hon, serial entrepreneur and Chairman of the Business Angel Network South East Asia (BANSEA); and John Fearon, Founder of Telr.com and ASX-listed cloud-based software platform Dropsuite (DSE:ASX). Dropfoods’ investors include ShuheiMorofuji, CEO and founder CEO of venture capital firm and venture builder REAPRA and TSE-listed SMS Co Ltd, one of the largest Asian internet healthcare information platforms; and Chiang Joon-Arn, Managing Partner, Financial Accounting Advisory Services – Asia Pacific – Ernst & Young.
Vietnam has approved a plan to scrutinize and streamline the legal framework for the management of cryptocurrencies.
This ICO is only open to accredited investors. “Accredited investors” refer to persons who are defined within the meaning provided under the laws of the country or territory of such person.