SYFE, a digital wealth management platform, has raised US$30 million in a Series B round led by Peter Thiel's Valar Ventures, on the back of rising interest from retail investors in digital investment tools amid a low interest rate environment.

Syfe said its valuation has tripled with this funding round, but declined to reveal any figures. Data from VentureCap Insights, based on regulatory filings as at July 8, places Syfe Holding's post-money valuation at US$210.6 million.

This latest round, which comes just nine months after its previous financing, brings the total amount of money raised to date to US$52.6 million. Other backers who joined the round include existing investors Presight Capital and Unbound. Unbound was founded by Shravin Bharti Mittal, the son of Bharti Enterprises billionaire Sunil Mittal.

The fresh funds will be used to expand into new Asian markets, develop its investment products, and invest in top talent. Chief executive Dhruv Arora declined to name specific markets that Syfe is planning to venture into. He told The Business Times that the company is planning to double its global headcount to over 200 staff in the next year, focusing on tech functions such as product design and engineering. He expects that staff in its Singapore office will make up about half - from 80 to 100 - of the global headcount.

Mr Arora founded Syfe in 2017, with the aim of making investing more accessible. For Syfe, management fees range from 0.35 per cent to 0.6 per cent, and there is no minimum amount required to start investing.

Before founding Syfe, he was vice-president of product and growth at Grofers, an Indian online grocery delivery service backed by SoftBank and Sequoia. He also formerly led UBS's Asia-Pacific exchange traded funds distribution efforts.

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Managing wealth has become a "necessity" in this low interest rate environment, said Mr Arora, adding that Syfe has been seeing a "significant increase in demand from customers". The majority of its users fall in the 28 to 45-year-old age range, where digital investment solutions like robo advisers have gained traction among a digitally savvy crowd hungry for yield. Syfe, along with other players such as StashAway and Endowus, automates the investment process to offer services at lower annual fees.

The platform has also seen an uptick in engagement with those above 50 years of age, said Mr Arora. "Older audiences currently make up a smaller base, but have a higher disposable income… They might be a bit slow to adapt and need a little hand-holding at the start, but it's an interesting segment we are watching."

Mr Arora said that all of Syfe's staff will receive "significant" shares in the company. Typically, companies allocate anywhere from 5 to 15 per cent of their shares to an employee stock option programme. "I want to be fair… We want to give proper meaningful equity to our people," he noted.

Robo advisers like Syfe have attracted investor interest in recent months. In April, StashAway raised US$25 million in a Series D round led by Sequoia Capital India, while Endowus in July managed to secure strategic investors in UBS, Singtel and Samsung, on the heels of a S$23 million Series A fundraise in April.

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