Smartly aims to offer average people with basic financial literacy the opportunity to invest with transparency and low fees

Vietnam-based investment company VinaCapital today announced that it has acquired the business operations of Smartly, a Singapore-based robo-advisory investment platform.

The terms of the transaction were not disclosed.

“By partnering with VinaCapital, we took a different approach to launching a robo-advisory platform than the rest of the pack. We were able to allocate valuable capital to places where it was most needed, stay focused on execution, and maintain strong financials and unit metrics. VCG Partners clearly saw the potential of the market and the platform,” said Smartly’s Co-founder Keir Veskivali.

“This acquisition of Smartly’s operations and the additional capital injections will enable Smartly to scale up, expand to new markets, and realise its full potential to become the leading digital wealth management platform in the region,” Veskivali added.

Founded in 2015 by Veskivali, Artur Luhaaar and Kentwell Kwok, Smartly is a robo-advisory platform targeted at Southeast Asian millennials. The startup aims to offer average people with basic financial literacy the opportunity to invest with transparency and low fees.

In 2016, Smartly began discussions with VCG Partners, the Singapore subsidiary of VinaCapital, about joining together to launch the platform. With the partnership formed, Smartly launched in September 2017. It uses smart algorithms to make investing simple and accessible to more people. Investors complete a simple questionnaire that assesses their risk tolerance, financial situation and goals. The robo-advisor then recommends a portfolio made up of a basket of exchange-traded funds (ETFs). The algorithms then rebalance portfolios on a periodic basis, accounting for changes in the global economy.

“Smartly has been a trailblazer in robo-advisory services in Singapore, and we look forward to building on the momentum and expanding to other Southeast Asian markets as their regulatory environments allow. For example, in Vietnam, current laws do not address robo-advisory services, creating significant risks for investors who elect to invest with some of the start-ups in the market that claim to offer such services,” said VCG Partners CEO Jason Ng.

Also Read: Syfe raises US$3.8M funding to launch digital wealth management services in Singapore

Post the deal, Veskivali will continue to support the company as a consultant and will work with VinaCapital on other tech ventures, while Luhaaar and Kwok have decided to pursue other projects.

Founded in 2003, VinaCapital is a leading investment management and real estate development firm with a diversified portfolio of US$1.8 billion in assets under management. VinaCapital also manages several open-ended funds, including the Forum One-VCG Partners Vietnam Fund, and the Vietnam Access Fund. VinaCapital has joint ventures with Draper Fisher Jurvetson in venture capital (DFJV), and Warburg Pincus in hospitality and lodging (Lodgis).

In March this year, VinaCapital Ventures, the VC arm of VinaCapital, made an undisclosed amount of investment in local startups UrBox and Wee Digital.

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