Ayondo sees Asia making up 50% of its revenue by 2019

Singapore

FINANCIAL technology and social trading firm Ayondo expects Asia to account for 50 per cent of its revenues by 2019, compared to a "very small" share of revenues today.

Robert Lempka, Ayondo founder and chief executive, said: "In 2017 we expect a lot of growth in Asia ... It's clearly our growth market. That's why we chose to be here in Singapore and to look at a listing. We believe the region is our future."

The firm is in the process of shifting its headquarters out of Switzerland into Singapore. Earlier this year it launched a reverse takeover of property developer Starland, through which it will gain a listed status. The deal is expected to be completed by the first quarter of 2017.

Ayondo is known for its social trading platform, which enables individuals to mimic or follow the transactions of top traders. Its business is also the trading of derivatives called contracts for difference (CFDs), which allows traders to get exposure to an underlying asset without actually owning the asset.

Ayondo's business model is to partner established brokerages to offer CFDs or social trading capabilities through a white labelled service. It currently has 220,000 users in 195 countries.

In Singapore last year, it partnered KGI Fraser Securities to offer a CFD trading platform, called KGI Contrax. Mr Lempka said the firm is also in "concrete" discussions with another partner to offer a social trading platform.

"I think the listing and the cash inflow on the back of the listing will put us in a better position to grow unorganically, potentially acquiring smaller brokerages in the region and maybe a licence with it."

He said social trading offers more transparency than investment funds, as users can view all the trades of the expert they follow in real time. In Europe the average user or "follower" is about 39, male, with an annual income of between 70,000 (S$106,500) and 100,000 euros. Expert traders, who are ranked according to their success rates, may be former professional traders and fund managers.

Yesterday, Ayondo announced the acquisition of the TradeHero brand, a Singapore investor education app that has been ranked the number one financial app among Apple iOS apps in over 90 countries.

The acquisition applies to TradeHero's brand outside China and the US. It further expands Ayondo's footprint in Singapore. TradeHero, created by Dominic Morris and Dinesh Bhatia in 2012, is a gamified virtual investment network where users share real time insights and compete to win cash.

Mr Morris, TradeHero co-founder and new head of innovation for Ayondo, said: "Ayondo and TradeHero share the same vision to democratise the world of investing through easy-to-use disruptive technology and knowledge sharing."