Financial technology group Ayondo, which enables social trading, has acquired Singapore investor education platform service TradeHero, in a deal that sees it acquiring the brand outside of China and the US markets.
This acquisition further expands ayondo’s footprint in Singapore, following a partnership with KGI Fraser Securities, a Taiwanese brokerage in Singapore to launch its first product, KGI Contrax, that allows investors to trade CFDs.
TradeHero, created by a Singapore based developer MyHero is an app that allows users to experience a virtual stock market and advance their financial literacy. Back in 2013, one year after creation, they raised a $10 million series A round.
Ayondo invests in new technology and high-growth business models that can be achieved through efficiency improvements within the banking sector. Core of the holding group portfolio is the Frankfurt-based social trading provider ayondo GmbH, based in Frankfurt and the FCA-regulated investment firm Ayondo markets Ltd., which is based in London.
Ayondo Singapore, established in 2014 following an investment from Singapore-based private equity fund, Luminor Capital Pte. Ltd. recently moved to a new office in newly renovated premises at Armenian Street.
TradeHero was created by Dominic Morris and Dinesh Bhatia in 2012. The service functions as a gamified virtual investment network where users share real-time insights and trades, competing to win real cash; users can replicate the behavior of other successful app users, with users notified of a trader they are following conducting a trade.
Social trading is gaining increasing traction as it reduces the learning curve for investors engaged in financial trading, by allowing beginners to replicate trade made by professional investors and veteran retail investors in their network, as well as ask them questions o the process.
Beyond minimising excessive research needed by pooling investor groups together and enabling crowdsourcing of their knowledge, these social elements enable people to find a trending stock, commodity, currency, or any other asset in a relatively simple manner.
Commenting on the acquisition, Robert Lempka, CEO of the ayondo Group, says: “For ayondo, mobile technology is a big part of the Group’s strategy for expansion and growth. The TradeHero brand is extremely well established in Asia and was the missing piece in our product range. Following Top Traders and taking social trading to the next level, in offering fully automated execution is exactly what is in ayondo’s DNA.”
The team of TradeHero’s mobile technology specialists are the foundation for ayondo’s Singapore-based mobile lab, which will see the latest research and development occur. This is aimed at granting the firm a competitive edge in designing, building, experimenting and refining new technologies for its platforms.
This comes in the wake of a push into Asia, with the fintech firm in advanced negotiations with a SGX-listed company on a reverse takeover (RTO) transaction that could see it being the first listed fintech firm in Singapore and a shifting of its head office to the city-state. The company aims to have a market capitalization of S$210 million ($154 million), with ayondo shareholders owning a 75 percent while planning to take fresh capital.
Speaking on the acquisition, Morris, co-founder of TradeHero and the new Head of Innovation for ayondo Group, adds: “ayondo and TradeHero share the same vision, that is to democratise the world of investing through easy-to-use disruptive technology and knowledge sharing.”