Armenia dissolves state-backed crowdfunding platform ARFI

PanARMENIAN.Net - ARFI CJSC, a state-owned company founded in November 2022 as Armenia’s first public investment crowdfunding platform, is set to be dissolved, according to the State Property Management Committee (SPMC), as reported by Hetq.

Originally introduced as “Armenia Financed,” ARFI was designed to connect global investors with Armenian private businesses and startups via online securities offerings. Its now-archived ANIF (Armenian National Interests Fund) website described the platform as a tool to attract diaspora investments, support Armenia’s business environment, and allow anyone over 18 to invest in promising projects remotely.

Sergey Grigoryan, former deputy CEO of ANIF and former chairman of ARFI’s board, described it as the world’s first state-run investment crowdfunding platform. He said it enabled remote identity verification and account setup at a depository, with plans to attract AMD 3.9 billion in investments across 13 ANIF-approved projects selected from over 300 applicants. The platform also aimed to facilitate systematic IPOs of state assets for diaspora and foreign investors.

According to archived data, ARFI secured investments in two companies—one in telecommunications and the other in courier services—while two more projects (3D scanning and cleaning services) were still in the fundraising phase.

Following a corruption scandal involving ANIF, which became subject to a criminal investigation, the government moved to dissolve the fund. Under an August 29, 2024 decision, ANIF’s assets—including shares and land plots—were to be transferred as donations. However, there was no mention of ARFI’s 100% shareholding. Instead, ANIF transferred ARFI platform’s non-material assets (including software and applications) worth AMD 224 million to the company through a contract signed on September 19, 2024.

Grigoryan criticized current management for allegedly attempting to sell the project multiple times before opting for liquidation, calling ARFI a strategic and uniquely capable platform that should be preserved for attracting online diaspora investments.

The SPMC did not confirm or deny attempts to sell ARFI but noted that, legally, any remaining assets after debt settlement would go to its shareholder—ANIF. Since ANIF itself is being dissolved, the shares would ultimately return to the state.

ARFI’s charter capital stands at AMD 411 million, excluding the 224 million in intangible assets received from ANIF. Grigoryan questioned the rationale for dismantling a functioning investment entity licensed by the Central Bank, emphasizing the value of its regulatory approval, software, and promotional materials.

ARFI was officially registered by the Central Bank on November 29, 2022, as a capital market operator.

Though the SPMC did not address Grigoryan’s claim about failed sales attempts, Deputy Chairman Gegham Hovsepyan confirmed that the liquidation process has begun. On March 18, ANIF decided to seek preliminary approval from the Central Bank to dissolve ARFI. Two days later, on March 20, ARFI’s director Edgar Evoyan formally submitted the request.