The digital wealth management start-up Syfe has announced that it has won S $ 40 million for its latest Series B funding round led by US company Valar Ventures.
Valar, the venture capital fund co-founded by Peter Thiel, had also led Syfe’s Series A. Existing investors Presight Capital and Unbound also participated in the final round.
The investment comes just nine months after Syfe’s Series A in September last year. To date, Syfe has raised total capital of S $ 70.7 million.
The funds raised will be used to expand into new markets in Asia, invest in top talent and develop more high quality investment products and services.
The pandemic has influenced consumer demand, said Sebastian Sieber, partner at Syfe.
âMany consumers are now more comfortable managing their finances digitally, and the fact that general consumer financial literacy has improved in recent years. More than ever, individuals are investing and using capital markets to grow their wealth, âsaid Sebastian.
For our existing investors, tracking their initial investment in such a short timeframe demonstrates their confidence in our vision of making savings and investing more accessible. Wealth management has become a necessity in this low interest rate environment, and we are seeing a significant increase in demand from clients looking for quality solutions.
– Dhruv Arora, CEO and founder of Syfe
âThe opportunity for the company to meet the savings and investment needs of a growing consumer population in Asia remains significant, and we are confident that Syfe will continue to grow at a steady pace,â said said Andrew McCormack, founding partner of Valar Ventures.
Syfe will expand its offices, incentivize new and existing employees
Syfe plans to increase its global workforce to 200 in the next 12 to 18 months, Sebastian said.
Syfe has doubled its workforce in Singapore since the start of the year to 50, bringing the total global workforce (including 50 employees in other places like Malaysia) to more than 100.
The company said it would make all of its employees a shareholder through an employee stock option program, allowing them to benefit from the company’s future growth.
This means that any full-time employee, regardless of seniority, from recent graduates to department heads, will have a share of ownership in the company. In the future, this will also apply to new hires, Sebastian said.
âThe close of this round is also a testament to the hard work and commitment of our team. Everyone in the company played a role in securing this latest funding, âDhruv added.
Growth potential in the new digital wealth industry
Assets under management have quadrupled since the start of the year, according to Syfe. This is thanks to the launch by the company of two products: Cash + and its Core wallets.
Most of the startup’s clients are between the ages of 28 and 45, although there has been recent growth in the number of investors over the age of 50 as they are more looking for banking alternatives to grow. their heritage. Syfe offers a range of solutions to meet different investment objectives and client needs, including low risk investments like Cash + and REIT + which offer a higher dividend yield.
Sebastian said that there is huge potential in the digital wealth management space as it represents only a small part of the overall market which includes traditional banks.
He did not comment on whether the emergence of digital banks next year would put competitive pressure on Syfe, but he noted that digibanks would be a great addition to the financial ecosystem.
âWith more players in the market, innovation and adoption of digital financial services will continue to accelerate,â said Sebastian.
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Featured Image Credit: Unsplash, Syfe