Quantifeed, a Hong Kong-based wealthtech company that designs digital solutions for financial institutions, has raised an undisclosed amount in a Series C funding round led by HSBC Alternatives and Daiwa PI Partners.
Alex Ypsilanti, CEO and co-founder, told DigFin the proceeds will boost the company’s expanding client categories.
Quantifeed got its start in 2014 as a robo-advisor building digital solutions for consumer banks, enabling them to better target their captive depositors with investment products. Quantifeed is a middle layer of technology between the bank’s own front end and its back-office engines, enabling customers to receive advice, implement investment strategies, and top up portfolios from their current accounts.
It won big mandates from the likes of CITIC Bank in Hong Kong, Cathay United Bank in Taiwan, DBS in Singapore and MUFG in Japan.
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Ypsilanti says the business is serving new client segments including private banks such as Thailand’s Phatra Private Bank. It is adding new geographies, with a first client from India in the works.
And it is looking to build tech for insurance companies so they can better leverage tied agency salesforces to distribute investment products. “That’s a distribution channel begging to be digitized,” Ypsilanti said.
He declined to disclose a valuation or other metrics for the business, but says the goal is to grow “by 10 times” in the next five years, which means a combination of increased revenues, geographies, and number and breadth of customers.
Quantifeed will remain focused on the Asia Pacific region, however.
“We compete on our knowledge of local nuances, and a deep integration with banks’ existing systems,” he said.
The company will also continue to raise private funding. “We need growth capital to grow quickly and inorganically,” Ypsilanti said, declining to detail potential M&A targets.
In previous funding rounds, leading investors have also been strategic partners. For example, Cathay United led the company’s Series B round in 2018. Legg Mason also participated in that round, and then was in turn acquired by Franklin Templeton – which then invested directly into a B+ round in 2020.
Franklin Templeton became a strategic backer. “We work with Franklin Templeton to develop propositions and win clients together,” Ypsilanti said.
He would not comment on HSBC and Daiwa’s potential involvement.
HSBC Alternatives is an arm of HSBC Asset Management. When the C Round was announced in May, Kara Byun, head of fintech for HSBC AM’s venture investments arm, said, “The investment [into Quantifeed] will give our clients and investment partners exposure to high-quality growth opportunities.”