Syfe’s revenue up by 2.5x in FY22/23, but still a fraction of its adjusted loss

Syfe, a Singapore-based investment platform, posted S$4.2 million (US$3.1 million) in group revenue for its most recent financial year (FYE 2023), which covers the period from April 2022 to March 2023.

This marked an over 140% increase from the US$1.3 million recorded between January and December 2021.

Photo credit: Syfe

However, its adjusted EBITDA loss widened by 27% to US$15.4 million within the same period, the company told Tech in Asia.

For comparison, robo-advisory firm StashAway saw revenue of US$6.8 million in 2022, and recorded US$20.1 million in losses. Similarly, wealthtech firm Endowus posted US$6.1 million of revenue in the same period, with losses of US$20 million.

Due to a change in the group’s reporting period, its financial statements for the previous financial year cover the 15 months from January 2021 to March 2022. However, the company, which shared the FYE 2023 data exclusively with Tech in Asia, did not disclose the previous financial year’s numbers to us and used the 12-month numbers in 2021 instead for “fair comparison.”

Photo credit: Syfe

Syfe’s Singapore business contributed to 99% of its total sales in FYE 2023, operating at a 92% gross profit for the period. The unit’s net loss decreased by 27% to US$7.4 million compared to 2021.

Meanwhile, its Hong Kong and Australia businesses did not generate significant revenues, as they were only soft-launched in the second half of 2022 – over three years after the company was founded in Singapore.

The group said that while it aims to replicate its success in other countries, Singapore will continue to be its core market.

Focused on key markets

When questioned about its expanding adjusted losses, Syfe explained that it incurred upfront costs for its launches in Hong Kong and Australia.

Nevertheless, its cost of sales as a percentage of revenue fell to 9% in FYE 2023, compared to 17% in 2021.

The company attributed this to its proprietary technology, which allows it to scale while keeping costs in check, as well as to a focused expansion strategy.

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