Syfe, a Singapore-based fintech startup and digital investment platform, has received approval to expand into Hong Kong.
The company – backed by Peter Thiel’s Valar Ventures, DST Partners and Unbound – has been granted a licence by the Securities and Futures Commission to deal and advise in securities and asset management.
This marks the fintech startup’s first geographical expansion beyond Singapore, where it launched in 2019. Syfe said it had raised $52.4 million to date.
“We see tremendous potential in the Hong Kong market given the current nascent stage of growth for digital wealth management platforms coupled with a high savings rate and rising cost of living,” founder and chief executive Dhruv Arora said.
He said Syfe creates its portfolios – which include equities, bonds and gold – based on a passive, long-term investment strategy that minimises costs.
The fintech startup also offers thematic portfolios include disruptive technology, healthcare innovation, China growth, global income and ESG & clean energy.
Dhruv said over the past few decades, passive investing has gained massive popularity through the proliferation of index funds and exchange-traded funds (ETFs).
“As technology advances, the next evolution of passive investing has now been made possible,” he said.
An investor directly owns the underlying individual stocks in their portfolio, and gains the same broad market exposure at the low cost that an ETF or index fund can offer, Dhruv added.
“The key benefits of direct indexing include greater transparency for investors, who will be able to know exactly what they own, cost savings of up to 90% of fund fees, and reduction in the overlap of stocks.”
- George Russell. This report has been amended to clarify that DST Partners invested in Syfe.