The South African decentralized cross-asset marketplace Mesh.trade has facilitated a $1.64 million (ZAR30 million) capital raise for a reverse mortgage provider. The capital raise allows the provider to offer homeowners the potential for lucrative returns while they remain in their homes.

Regulated Alternative Capital Raising Platform

The decentralized cross-asset marketplace, Mesh.trade, recently launched a $1.64 million (ZAR30 million) capital raise for the South African reverse mortgage provider Water Financial. The raise involved issuing 30,000 Series A preference shares which pay an equivalent of 87% of the prime lending rate.

According to a report, the capital raise is the first of several planned capital raises to support Water Financial’s expanding lending needs, according to a report. Mesh.trade Managing Director Connie Bloem said the platform offers an alternative approach to raising capital.

“We designed our platform to offer investors access to previously inaccessible investments, as well as a regulated alternative avenue for entrepreneurs looking to raise capital to fund their growth,” Bloem said.

Mesh.trade plans to issue more alternative and private capital assets to investors in the coming months, Bloem revealed.

Water Financial founder and managing director Chris Loker praised Mesh.trade’s capital raise which he said helps elderly homeowners retain ownership of their homes. Loker added that investors participating in the capital raise enable Water Financial to offer homeowners potentially lucrative returns without disrupting their lives.

“[The] platform gives investors access to higher than inflation returns from an innovative business looking to disintermediate traditional financial institutions that are unable to service this growing market segment,” Loker added.