Nomura Asset Management (NAM), the Japanese holding company, has invested $25m in 8 Securities, a fintech company also based in Japan, it was announced yesterday.
NAM will acquire ordinary shares issued by 8 Securities and 8 Limited. NAM plans to invest around 1.6bn yen ($15m) in 8 Securities and will hold a majority of the outstanding shares.
The investment in 8 Limited will be approximately 1.1bn yen, and NAM will become a minority shareholder. NAM intends to make the respective investments in early April.
Based in Japan, 8 Securities provides discretionary robo-advisory services through iOS and Android mobile apps using exchange-traded funds (ETFs). 8 Limited also provides mobile app robo-advisory and online brokerage services in Hong Kong, through local affiliate FinTech company 8 Securities Limited (collectively known as 8 Group).
Launched in 2012, 8 Securities was founded by Mathias Helleu, executive chairman, and Mikaal Abdulla, CEO.
By collaborating with the 8 Group, NAM aims to leverage the functions of the 8 Securities platform to deliver high value-added services to its clients. NAM also aims to provide these services to other financial institutions.
8 Securities is preparing to offer NAM index funds. NAM and 8 Securities will work together to develop the necessary app with the aim of launching the product from this fall. NAM will also pursue strategic collaboration with the 8 Group in fintech areas in Asia.
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, increase the size of the software development team and expand into new geographies.”