Peter Thiel Drives Syfe's Growth Amid Hong Kong's Financial Landscape

Peter Thiel Fuels Syfe's Ambitions

Syfe, a Singapore-based robo adviser and investment platform operator, has raised HK$210 million (US$27 million) from new investors and existing venture capital funds, helping triple its financial power to capture the growth potential in Hong Kong. The cash came from two undisclosed UK-based family offices, according to a statement on Wednesday.

Strategic Partnerships and Market Opportunity

Other financiers included earlier-round investors such as London-based Unbound and US-based Valar Ventures. Syfe has now raised HK$615 million since its inception in 2019. The expansion is an important step for Syfe to broaden its services in the Asia-Pacific market, which accounts for one-third of the US$270 billion mass affluent market and is the fastest growing region worldwide, founder and CEO Dhruv Arora said.

Mass Affluent Market in Hong Kong

• In Hong Kong, 55 percent of adults are in the mass affluent category, typically defined as investible assets between US$100,000 and US$1 million.
• This makes Hong Kong an outstanding opportunity.

The new funding will accelerate development and help Syfe offer more innovative new products to investors, he added. A robo adviser is an online platform that provides automated financial planning and investment guidance to customers with no human involvement.

Attractiveness of Hong Kong's Financial Sector

The funding in Hong Kong underscores the city’s drive to become a key destination in the region for capital from global family offices, according to analysts. Over the past two years, the government has dangled tax breaks and an investment migration scheme, among other incentives, to attract wealthy investors amid stiff competition with Singapore.

This news is a testament to Hong Kong’s enduring attractiveness as a leading financial centre,” said David Chang, founder and CEO of venture capital firm MindWorks. “Fintech start-ups or companies in general thrive in dynamic financial hubs [like] Hong Kong.”

Future Growth and Collaborations

While Hong Kong is well-served by more than 160 banks and 164 insurers, Arora said Syfe can still find growth through partnerships. It teamed up with Canadian insurer Manulife earlier this year to launch a robo adviser portal to help Mandatory Provident Fund members make investment decisions.

Syfe is also able to offer deposit products via tie-ups with banks, he added. “Instead of simply going against the banks, we found a way to partner with them by leveraging our scale and proprietary technology as a leading fintech platform to access institutional products, which offer higher rates compared to those offered to individual retail customers,” Arora said.

Innovative Products for Wealth Management

Unbound, one of its current financial backers, is upbeat about the outlook. Syfe’s impressive growth and operational efficiency continue to make it stand out in the fintech space, according to its founder and CEO Shravin Mittal. Shravin is the son of Sunil Bharti Mittal, the founder of Indian telecommunications group Bharti Enterprise.

Valar Ventures, a venture capital fund founded by Andrew McCormack, James Fitzgerald and Peter Thiel, invests in financial start-ups around the world. Syfe is also interested in the Wealth Management Connect scheme and opportunities in the Greater Bay Area.

This funding will enable us to reach more customers and help them grow their wealth for a better future,” Arora said. Through increased investment in development, we will bring even more innovative new products to market while continuously upgrading the Syfe user experience.