This ‘dating app’ for investment banking is going places

Photo credit: stevepb

A Singapore startup is fast expanding following its recently concluded funding round in July.

BankerBay, a deal-matching platform that uses algorithms to match institutional investors with corporate deals, will set up its new headquarters in New York later this month. The company currently has offices in Singapore and India, but plans to open an office in Shanghai by the end of this year. Plans for a London office next year are also underway.

According to CEO and founder, Romesh Jayawickrama, he’s planning to have an office in each of the financial capitals of the world.

Romesh Jayawickrama, CEO and founder of BankerBay, at the startup’s Bangalore office. Photo Credit: Yati Himatsingka

Rapid growth

Since its launch two years ago, the startup has seen monthly deal flows on its platform increase from US$75 million to US$10 billion. BankerBay has raised US$4 million in funding so far, half of which was secured in a pre-Series A round in July 2016 from private investors.

From an initial team of three, BankerBay has grown its staff size to 30 employees across Singapore, India, and New York. The startup includes a core team of ex-bankers called transaction management analysts (TMAs), who assess deals submitted to the platform to ensure their quality.

Bringing an old-fashioned industry up to date

Investment banking has long relied on building client relationships personally. The process can take bankers months and sometimes years to forge, with the single goal of extracting enough information to ascertain whether the corporation may need capital in the future.

We’re trying to help the banks stay relevant by adopting efficient technology.

As an investment banker, Romesh found this time-consuming and costly.

According to Romesh, Investment banking hasn’t changed since the early 1900s. However, the global financial crisis of 2008 forced an increase in transparency and regulations in the industry, exposing many of its inefficiencies.

Romesh adds that almost all of the largest, most profitable multi-national banks have suffered massively because of the crisis. BankerBay, he says, is “trying to help the banks stay relevant by adopting efficient technology.”

How BankerBay works

The idea for BankerBay came from many years of personal frustrations with the investment banking industry. Romesh saw the potential to automate many parts of the deal origination and distribution process, including the process of gathering critical information about capital seekers and investors.

The outlook for BankerBay