Up, Telescope! Inside Easy's AI punt

Purple Group, the South African parent company of online brokerage EasyEquities, has acquired Australian artificial intelligence startup Telescope for approximately R176 million ($10.75 million). The deal brings in-house the team behind the Easy AI baskets feature, which Purple Group has used for the past two years.

CEO Charles Savage said the decision to buy rather than build was driven by the scarcity of top-tier AI talent. “We’re playing in the C-league, and these guys play in the A-league,” he told the Financial Mail, adding that he decided two years ago AI would be “the operating system for the future of finance.” The acquisition gives Purple Group a dedicated team that focuses exclusively on AI for compliant, regulated investing.

Savage met Telescope founder Luc Pettett about a decade ago through horse-racing interests. Pettett previously built Punters.com, a content and betting platform for Australian sports fans. When Pettett moved into AI investing, he approached Savage, and Telescope became EasyEquities’ first client. The two companies had already been working together, and the acquisition formalises the relationship.

Telescope’s financials are modest — net assets of less than A$500,000 and a first-half loss of A$88,272 as of end-February. But Savage said the purchase should not be judged on current income alone. “We’re buying early,” he said, pointing to the value of combining Telescope’s AI expertise with Purple Group’s 1.3 million active clients and a decade of trading data. The aim is to transform all client touchpoints, from buying and selling shares to portfolio reviews.

The deal, which represents about 3% of Purple Group’s net asset value, also supports expansion plans. Savage highlighted multi-language capabilities as a key benefit, especially for EasyEquities’ push into the Philippines and for serving South Africa’s 11 official languages. “In the old world we would have had to hire multilingual client service agents… now you can serve AI at scale in multiple languages easily,” he said.

Telescope also serves other brokers such as IG Markets and CMC Markets. Savage said these relationships should not be affected, as Purple Group does not compete directly in those markets, and the acquisition could ultimately improve products for all clients.