Published by WealthBriefing Asia – 16th November 2016
Nutmeg has secured a £24 million ($30 million) investment from Hong Kong-based Convoy Global as part of a £30 million funding round.
The new capital will be used to enhance Nutmeg’s product offering and boost the scale of the UK business, the company said in a statement. It will focus specifically on innovation including new investing options, tax wrappers and advisory capabilities.
The partnership with Convoy, meanwhile, will allow Nutmeg to expand into Asia. As part of the deal, Johnny Chen, senior advisor to Convoy and former Greater China chief executive of Zurich Insurance Group, will join the Nutmeg board.
“Since Convoy is a leading independent financial advisory company in Asia, the partnership will help to open the door for Nutmeg to develop business in Asia, the world’s fastest-growing market and to provide smart investment and advisory services to a wider swath of global geography online,” said Martin Stead, CEO of Nutmeg.
Ng Wing Fai, group president of Convoy Globa, added: “What we’re most excited about is Nutmeg’s mission to democratise wealth management while delivering sustained investment performance and a seamless customer experience. We look forward to supporting Nutmeg’s continuous product innovation and are confident they will deliver the Nutmeg experience to an even greater number of customers in the near future.”
Nutmeg, which was launched in 2012, manages more than £500 million for over 20,000 customers, making it more than four times the size it was in 2014 at the time of its last fundraising round. For 2016 year-to-date, Nutmeg says it has won more than 10,000 new customers.
“At a time when there are concerns about the impact of Brexit, here is a London-based business engaged in dynamic fintech innovation and attracting global investors,” Victor Basta, managing director of Magister Advisors, who advised Nutmeg, said in a statement yesterday.
“European tech is witnessing a surge in investment from Asia. We expect the value of investment this year to be ten times the level it was three years ago and we expect to see further significant rises in the years ahead. We’ve already seen two blockbuster acquisitions of European tech companies, Supercell and ARM, by Asian buyers this year,” Basta said.
“Nutmeg’s announcement today represents the largest fintech fundraise to be announced in Europe since Brexit and the largest investment yet in a European robo advisor. It is also the largest EU fundraise in fintech led by an Asian investor this year and is indicative of the broader trend towards Asian investors backing the best European tech assets,” he added.
Convoy Global’s services include financial planning, asset management, life and general insurance, corporate finance and securities trading.
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