SINGAPORE - Ayondo, the European social trading platform which is headed for a listing on the Singapore Exchange via a reverse takeover next March, said on Tuesday (Nov 15) that it had entered a perpetual licensing deal with homegrown stock market simulation app maker TradeHero.
Chief executive Robert Lempka told The Straits Times: "We have full brand rights, name rights and operational control outside of China and the United States."
The deal will help Ayondo expand its footprint in Southeast Asia, by riding on the popularity of the TradeHero mobile app to acquire customers and get them onto Ayondo's other platforms.
Restrictions in Singapore prevent the marketing of social trading services, although Ayondo can engage in soft marketing through partnerships and trading seminars here.
Mr Lempka said: "For Ayondo, mobile technology is a big part of the group's strategy for expansion. The TradeHero brand is extremely well-established in Asia and was the missing piece in our product range."
The TradeHero app has hit close to a million downloads outside of China and the United States since 2012.
The size of the deal was not disclosed, as it was structured as a revenue-sharing model with TradeHero getting a slice of Ayondo's future earnings.
Mr Lempka said that Ayondo is on track to complete its reverse takeover as early as March next year.
On why he had chosen Singapore as a listing destination, Mr Lempka said he was hoping to enjoy a first-mover advantage.
"Our assumption is that we are going to be the first fintech company listing in Singapore, so naturally there would be more demand for our stock than if we were one of 10," he said.
Ayondo opened its first office outside of Europe in Singapore in 2014, after Singapore-based private equity fund Luminor Capital became a convertible bond holder in Ayondo.