Digital wealth manager Kristal.AI raises 6 million in Series A funding
Expand further into APAC region
HONG KONG, Jan. 23, 2020 /PRNewswire/ -- Kristal.AI is a 4-year old invest-tech startup which uses a bionic approach to personalize investments. The company started its business in Hong Kong since 2016 and now it is planning to use its Series A funding, to bring its AI-driven personalized wealth platform to more countries in APAC regions.
Artificial Intelligence has long been hailed as the future of fintech, and Singapore-based digital wealth management platform Kristal.AI is proving that maxim true. The company, started by Indian entrepreneurs, has offices in Hong Kong, Singapore, and India. Kristal.AI is celebrating its 4-year anniversary in January 2020, after closing last year with a sizable Series A round of USD 6 million (upsized from an initial target of USD 4 million).
The funding round is led by long-term partners Chiratae Ventures (formerly IDG Ventures India) and influential names such as Desai Family Office, which has interests ranging from fintech to boutique investments. Other investors include HNWI names well known in the financial industry. This round brings the total Kristal.AI has raised till date to USD 11 million.
Financial technology has been evolving rapidly over the past decade. Despite the relatively small Hong Kong market, innovative technology companies have continued to emerge with the vigorous promotion of the government. Kristal.AI has also benefitted from the support provided by the Cyberport Incubation program and SFC Fintech Unit when commencing business here.
Hong Kong-based Co-founder of Kristal.AI Vivek Mohindra said, "Kristal.AI fulfils a much-needed gap in the HK market for the beginner and smaller investors who really don't have much choices at present. We provide a digital mobile friendly solution that is educational and free of cost till HKD 400,000." Hong Kong customers are now looking for smart investment platforms with higher transparency, lower fees, and other value-added services. The HKMA has recently released a report on the application of artificial intelligence in the banking industry, showing that nearly 90% of retail banks have used or plan to use artificial intelligence in their businesses.
Kristal.AI's CEO and founder Asheesh Chanda added, "The aspirational class today does not live in boxes. We don't work at the same job until retirement, we don't all marry and buy houses at thirty, and most of us have a very different way of living than the generation before. However, the way we invest has not evolved with our evolving lifestyles. The new-gen investor needs strategies personalized for their individual risk profile, lifestyle, and expectations. Traditional banks offer such hyper-personalization only to high-profile clients, but we are bringing it to the everyman. Kristal.AI's strategies are made for the new-age global investor."
Kristal.AI will use the Series A funds towards bolstering its technology backend, crafting more curated strategies (called Kristals), and expanding further into the APAC and Middle-East market. The company is also poised to launch a new offering for its Indian market very soon.
Since officially launching in February 2016, Kristal.AI has experienced consistent growth and currently handles over USD 100 million in AUM, with 10,000 users on its platform. The company's custom-crafted strategies have provided consistent returns to investors even in volatile markets, with both its Leveraged Bond Kristal and Singapore REITs Kristal achieving around 14% returns historically.
Founded by Asheesh Chanda and Vineeth Narasimhan, Kristal.AI has been operated in Hong Kong under "Type 4" and "Type 9" licensing provided by SFC since 2016, and it was the only Fund Manager admitted to the MAS Singapore Regulatory Sandbox in 2017 (followed by a Full CMS License in 2018). Kristal.AI uses a patented genetic algorithm, along with the financial acumen of its in-house panel of experts, to recommend and create personalized portfolios for every investor.
The company admitted to the Cyberport Incubation program in Feb 2017 and selected as "Outstanding AI-powered & Web-based Asset Management Platform" at the Fintech Awards 2018 held by HKET. For last year, it was shortlisted as the finalist in Alibaba Jumpstarter, selected as Deloitte Hong Kong Technology Fast & Rising Star and won the Bronze Medal in Asia Smart App Award. Kristal.AI uses a patented genetic algorithm, along with the financial acumen of its in-house panel of experts, to recommend and create personalized portfolios for every investor.
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