Nomura Asset Management has agreed to invest $25 million in 8 Securities, a Japanese fintech company, and its Hong Kong headquartered parent company 8 Limited.
Nomura said it will hold majority shares in 8 Securities and minority shares in 8 Limited.
This investment not only demonstrates the positive growth potential of robo-advisory in Asia, but also marks one of the largest fintech capital injections in Asia this year.
Launched in 2012, 8 Securities was founded by executive chairman Mathias Helleu and CEO Mikaal Abdulla. It provides discretionary robo advisory services through iOS and Android mobile apps using exchange-traded funds.
8 Limited also provides mobile app robo advisory and online brokerages in Hong Kong.
8 Securities is currently preparing to offer Nomura index funds. The duo will launch new digital wealth management services including robo-advisory and mobile investing solutions for millennials.
The two parties also intend to work together on new fintech initiatives in Asia including Japan.
Commenting on the partnership Abdulla said: ‘The newly injected capital will enable 8 Securities group to accelerate customer growth, develop new products and R&D [research and development], increase the size of the software development team, and expand into new geographies.'
‘We will build synergies between Nomura’s asset management expertise and 8 Securities mobile robo-advisor apps,’ added Kunio Watanabe, President and CEO of Nomura Asset Management.