Kristal.AI, a Singapore-headquartered digital wealth management firm, has secured $6 million in capital via a Series A round, which was led by Chiratae Ventures (previously known as IDG Ventures). The Desai Family Office and several others including high-net-worth-individuals (HNWIs) also took part in the round.
Established in Hong Kong in 2016 by two Indian citizens, Asheesh Chanda and Vineeth Narasimhan, Kristal.AI has raised $11 million since its launch. The firm intends to use the money to update its technology, develop more curated business strategies (referred to as Kristals), and further expand its operations into the APAC and Middle-East regions. The firm is also set to introduce a new product offering for its Indian market.
TCM Sundaram, founding partner at Chiratae Ventures, stated:
“Traditional banking is changing. One of the biggest differentiators in the future will be an advisor’s ability to deliver real-time, highly personalized investment experiences and Kristal.AI is doing exactly that.”
Overall Interest in artificial intelligence (AI) has been increasing steadily in the global financial industry. The quantitative hedge fund industry recently exceeded $1 trillion in assets under management following a significant increase in customer demand for greater transparency in conducting business and also the rising demand for AI-enhanced investment schemes.
Large financial institutions have also been investing in AI, with J.P. Morgan Chase, the world’s sixth-largest bank, allocating about $10.8 billion in 2019 to upgrade its internet and mobile-based services. Meanwhile, the Monetary Authority of Singapore has moved towards supporting nationwide digitization efforts with its client-consent based data sharing and DigiBank License.
Asheesh Chanda, CEO and founder at Kristal.AI, noted:
“The aspirational class today does not live inbox. 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’s business operations have been expanding steadily. The firm presently oversees more than $100 million in AUM, with around 10,000 users on its platform. The company’s customized investment strategies have generated sizable returns for investors even during times of uncertainty and market downturns, with its Leveraged Bond Kristal and Singapore REITs Kristal yielding about 14% returns (on average).
Kristal.AI reportedly uses a patented genetic algorithm, and the financial expertise of its advisors, in order to open personalize investment portfolios for every client.