Yesterday UAE-based blockchain startup Verofax said it raised $1.2m in a seed round for its automation and traceability platform. The investment was led by London-based Trove Capital, which was joined by MFD Holding, Kepler Fund Managers and Casablanca Holding.
The successful raise follows Verofax’s expansion into Asia and Africa in Q4 of 2020. The company intends to use the proceeds from the seed fund for existing projects, as well as launching a marketing campaign targeting the food, healthcare and apparel industries and expanding its team.
Established in 2018, the company hopes its technology can allow businesses to prevent counterfeits, improve manufacturer engagement with customers and use data insights to increase staff productivity. According to rhe Global Brand Counterfeiting Report 2018-2020, counterfeiting was forecast to account for $1.82 trillion business losses globally by 2020.
CEO and Verofax co-founder Wassim Merheby said of the raise: “US, EU, China and Russia have already adopted regulations for retailer and e-commerce accountability on fake merchandise sold through their marketplaces. Verofax simply adds certainty in global trade with item digital ID throughout every product lifecycle.”
The first application of Verofax’s traceability blockchain technology was for medical organ donation tracing. In December last year, Verofax Asia partnered with Malaysian fashion brand Auri for traceability. The partnership aims to demonstrate that Auri’s clothing is ethically and sustainably sourced. That application uses AntChain, but Verofax also uses enterprise blockchain Hyperledger Fabric.
Meanwhile, there are numerous blockchain initiatives targeting counterfeiting, particularly for luxury brands. Mastercard launched a solution, and LVMH created AURA as an anti-counterfeit solution which group brand Hublot also uses. Another watch brand Breitling has also adopted blockchain technology.