Hata Secures $4.2 Million Seed Funding, Aims for Global Growth

Hata, a Malaysian digital asset exchange, has successfully raised $4.2 million in seed funding, marking a significant milestone for the startup. This funding will be utilized to develop innovative products and enhance their competitive edge in the cryptocurrency market.

Understanding Hata's Role in the Crypto Space

Hata serves as a bridge between traditional finance and cryptocurrencies, enabling users to buy, sell, and manage digital assets using local currencies such as the Malaysian Ringgit (MYR) and US Dollar (USD). It is the only dual-licensed exchange in Malaysia, regulated by both the Securities Commission Malaysia and the Labuan Financial Services Authority. This dual licensing allows Hata to operate two platforms: one for local transactions in MYR and another for global trading in USD.

The Fundraising Journey of Hata

Hata's fundraising journey began over a year ago, initially targeting local investors before expanding to Singapore and the United States. After securing a term sheet in April, the deal was finalized in October following thorough due diligence. Co-founder and CEO David shared that their initial attempts were met with lowball offers, but they remained steadfast in their valuation, ultimately attracting institutional investors from the US.

David emphasized the importance of starting the fundraising process early, allowing startups to reject undervalued offers. He outlined three key criteria for identifying the right investors: genuine interest and available capital, industry understanding, and appropriate mandates from their investment committees.

Balancing Fundraising and Business Operations

David also highlighted that fundraising is a full-time commitment for CEOs. He dedicated significant time to sourcing investors, negotiating terms, and finalizing agreements. For solo founders, he advised finding strong co-founders to share the workload and drive the business forward.

Expanding Horizons Beyond Malaysia

Hata’s success in securing international funding is attributed to its focus on scalability and a clear roadmap for global expansion. By addressing universal challenges and showcasing a commitment to growth, Hata aims to attract more favorable investment opportunities. David noted that while skepticism exists among investors regarding Malaysian startups, it should not deter them from reaching out.

Future Aspirations of Hata

With the new funding, Hata plans to establish itself as a leading hub for digital assets and blockchain innovation in the region. The startup is committed to nurturing local talent and advancing the blockchain ecosystem in Malaysia, despite rumors of relocating their headquarters.