Ayondo – Singapore’s First Fintech IPO

Company profile: Ayondo

Blind spice tasting and stock trading are not for the faint hearted. Stock trading – something that plenty of people take up as a career option or to make a quick buck but often results in losses. However, there are some who study and instinctively know when to exit either to capture profits or to minimise losses. What if everyone who ventured in this space could do that or least have access to someone who knows the entry and exit points and can help generate profits?

Ayondo is about social trading technology that lets you follow and copy the actions of experts automatically. Founded in 2009, with Robert Lempka as the Co-Founder and CEO Ayondo has 70 employees and operates globally with offices in Frankfurt, Zürich, London and Singapore.

They allow trading in CFD/Spread Betting as a ‘Social Trading’ platform. Their typical clients are retail consumers and institutions who would use their technology as a white-labelled solution or act as an affiliate or an introducing broker.

The Business

Ayondo has a B2C and a B2B offering.

B2C offering is both, a trading platform where private investors sign-up and trade Spread Betting and CFD products and a social trading platform that allows users to follow the trades of experts. As soon as the users sign-up to the platform they can find the best traders based on the users risk profile and start to follow them. The followers of a trader can also see their profits, markets traded, their performance and risk profile along with the charts and rankings when compared to similar profiled traders.

B2B offering is White Labelling of Ayondo’s technology under each institutions own brand with completed customisation. Ayondo has its financial services company (formerly known as Gekko Global Markets) and can execute Spread Betting and CFD trading in any market. In addition, Ayondo also has Introducing Broker concept whereby Brokers can utilise Ayondo for marketing support, its multilingual customer support team and in addition get paid a large portion of the revenues generated.

The Engine

This is a simple model, something we have seen before. It is a trading engine, allowing you to trade. The only difference in the product is ‘Social Trading’. Ayondo’s model is straightforward. If you sign-up you get access to reputed traders, see their trades, their current and past positions, their past performance with complete transparency.

Ayondo’s clients are retail customers and institutions that want to use its technology. Ayondo is selling the Social Trading concept and transparency associated with it to its clients.

Ayondo follows industry standards and generates revenues through the spreads.

The Profitability Conundrum

Ayondo has global presence and consumers in both segments. CEO Robert Lempka communicated that Ayondo is profitable and is generating real dollars.

The Intrinsic Value

So what is Ayondo changing? Does it add any value to the existing process and do they have competition?

Ayondo is engaged in disseminating information to its users about successful trades by traders on their platform and is providing tools for those who wish to use successful strategies by replicating the model. The change is – success is no longer invisible, you can decide based on your risk profile how your version of success will look like by following the leaders.

There is value added to the existing process by disclosure of information that was never seen before. It is something every aspiring trader has wanted to have access to and now you have Ayondo and its competitors.

Competition is never a bad thing because if you are good you want to be the best. eToro, ZuluTrade, Signal Trader, Tradeo and some more are Ayondo’s competitors. From a functionality perspective there are some chinks in Ayondo’s armoury but you will not have 190,000 users from 195 countries if the offering was not attractive enough.

What makes Ayondo unique? The platform, transparency, social approach, right choice of growth markets (read: Asia) and management team.

The Verdict

At the helm of Ayondo are individuals who understand nuances of trading – the pressure, the losses and more importantly what make the traders tick. Like in any field, there are some who are better than others but when we talk of democratisation if you understand the behaviour of a trader and more importantly if you can emulate that by receiving real information then you can solve a problem or two.

The most critical element in an aeroplane is a black box as it helps improve everything for the next flight. Successful trading has been a black box and Ayondo brings out the black box information real-time to help those who chose to follow the leads.

As CEO Robert Lempka puts it – ‘the entry points to a trade are many but only the successful traders know the exit points’. There will always be accidents and nightmare scenarios but disclosing the successful (or unsuccessful) strategy gives one a chance of going in a trade with eyes wide open.

Having said everything, till a few weeks ago I was not even aware of Ayondo’s offering. There is something to say about a chink in the armour – Ayondo needs to find a way to market itself.

Ayondo’s announcement to be likely the first Fintech company to be listed on SGX via an RTO stamps its position in the market as a leader. For a young Fintech this is a testament of the adoption of their model. Ayondo is demystifying the trading black box, can they also muster up a marketing plan?

Founder comments

We are extremely excited about our proposed Singapore listing as this will provide an excellent platform to accelerate growth and brand awareness globally, Asia in particular. The new group will be financially powerful and will enable us to continue to execute our ambitious plans.

Disclaimer: This material is for informational purposes only and should not be construed as research or as investment advice, nor should it be considered information sufficient upon which to base an investment decision.  Further, this communication should not be deemed as a recommendation to invest or not to invest.

The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete in its accuracy and cannot be guaranteed.

Feature image: https://stocksnap.io