The digital wealth management start-up Syfe has announced that it has won S $ 40 million in 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 a total of S $ 70.7 million.
The latter funding will be used to expand into new markets in Asia, invest in top talent and develop more high quality investment products and services.
Sebastian Sieber, partner at Syfe, observed that the pandemic had influenced consumer demand.
“Many consumers are now more comfortable managing their finances digitally, and as general consumer financial literacy has improved in recent years, more people than ever are investing and using capital markets to grow. their wealth, ”he said.
For our existing investors, tracking their initial investment in such a short time frame 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
“The 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,” said added Andrew McCormack, Founding Partner, Valar Ventures.
Syfe will expand its offices, incentivize new and existing employees
Sebastian revealed that Syfe plans to increase its global workforce to 200 in the next 12-18 months.
The company 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.
“The 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, ”Dhruv 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 28 and 45 years old, 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 increase 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 portion 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 did note that digital banks would be a great addition to the financial ecosystem.
“With more players in the market, innovation and adoption of digital financial services will continue to accelerate,” said Sebastian.
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Featured Image Credit: Unsplash, Syfe
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