SGX invests in SmartKarma

Source: SmartKarma

Smartkarma, the global investment research network, today announced it has received a strategic investment from Singapore Exchange (SGX).

The largest investment in a Singapore-headquartered fintech company to date, it marks the next step in ensuring a vibrant financial research ecosystem. It further underpins Singapore’s vision to serve as Asia’s centre for capital raising and enterprise financing.

Existing investors including Sequoia India and Wavemaker Partners also participated in this investment, which affirms their ongoing confidence in Smartkarma.

The strategic investment cements a joint journey of collaboration between SGX and Smartkarma. Aligning with the Monetary Authority of Singapore’s (MAS) recent announcement of the Grant for Equity Markets (GEMS) to strengthen research coverage of Singapore enterprises, this is a resounding validation of what Smartkarma has been working on from day one: the reinvention of the global investment research market through technological innovation.

The deal comes at a point when Smartkarma is in the final stretch of launching Corporate Solutions globally. As Asia’s leading and most trusted multi-asset exchange, SGX was a pilot partner during the development of Corporate Solutions, a brand-new range of services for C-Suite and Investor Relations personnel of listed companies worldwide.

SGX will be the first exchange in the world to bring the power of this new global platform to all its listed and upcoming companies, as well as global bond issuers.

SGX-listed companies and bond issuers will be the first to plug into, and take advantage of, Smartkarma’s established global network of independent analysts and investors. They will get value from connecting directly to investors and analysts, and distributing pivotal updates and information to their networks quickly and efficiently.

SGX recognises the global need of corporates to connect to institutional investors and analysts. Exchanges the world over are trying to diversify their services and exploring ways to bring more value to their companies. There is a market gap there that has only widened following regulatory developments like Europe’s MiFID II legislation.

In this evolving market, Smartkarma empowers companies with its groundbreaking technology platform, establishing connections, offering unique data and analytics, and promoting high-quality independent research to improve investment decision-making. Corporate Solutions has been designed to put the issuer first, and will form a key part of the value SGX aims to bring its companies and clients.

“Shifting regulations and changes in the investment research industry are affecting all parts of the ecosystem. From the very beginning, we have been working hard to address the fundamental gaps we see around us,” says Raghav Kapoor, Co-Founder and CEO of Smartkarma.

“We are building a network that connects companies, analysts, and investors, starting from Singapore and spreading throughout the global markets. SGX shares our conviction that technological innovation is the key to navigating this new landscape, and Singapore-listed companies will be the first to experience the fruits of this labour,” he adds.

“Regulatory and market developments show that enlightened corporates can no longer rely on traditional banks and brokers to manage their listing, fundraising, and shareholder relationships,” says Jon Foster, Co-Founder and Chairman of Smartkarma. “With new technology and open networks, like Smartkarma and SGX, it is now easier than ever for corporates to eschew these closed, expensive old-boy networks and take control.”

“Research data and information are crucial to making informed investment decisions. With the advent of technology, we see tremendous potential in this innovative platform that is adding another dimension to fundamental investment research. As SGX continues to uphold the standard and availability of research coverage through initiatives such as partnering with the Monetary Authority of Singapore on GEMS, we are also investing in new models to serve investors and companies now and in the future,” says Chan Kum Kong, Head of Research and Retail, SGX.

We Are Reinventing Research Worldwide

Steadfast in our belief in the value of truly independent, unbiased research, and dedicated to fostering innovation in Singapore’s investment research ecosystem, Smartkarma will also be bringing our world-first Independent Research Accelerator, Boost Research, to Singapore. Boost Research has been operating successfully in London for the past year.

Additionally, Smartkarma will offer SGX’s institutional bond trading clients access to its platform, enabling them to access unique institutional research into corporate and sovereign bonds and fixed interest products, strengthening their bond trading activities.

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