Micro-investment app Wombat raises £4m
London-based investment platform Wombat has closed a £4m Series A funding round to support its growth plans, upcoming product launches, and international expansion.
Launched in 2019, Wombat is a mobile investment platform that lets users purchase fractions of shares in blue chip companies. This means customers can purchase small stakes in major companies for a minimum cost of £10.
The service targets inexperienced first-time investors, with the promise of lower-risk investments into high-value stocks.
Investment apps aimed at novices, including Robinhood and eToro, have enjoyed a surge in popularity in recent years. Stock trading app revenue reached $10.9bn in 2020, compared to $3.2bn in 2016.
“Wombat has come a long way in the last three years and closing this funding round is another key milestone on our journey to help more budding investors embrace the habit of saving and investing for their futures,” said Wombat co-founder and CEO, Kane Harrison.
The new funding for the company will go towards its plans for a European expansion, with further international growth planned later down the line.
“Against a hugely challenging macroeconomic backdrop, we felt it was appropriate to seek funding with a fair valuation and we feel our decision was rewarded with a raise that will help us achieve our immediate goals in terms of growth, expansion into Europe and product development.
The Series A investment was led by Fuel Ventures, which previously backed Wombat, leading its £2m seed funding round.
Additional finances came from a four-week crowdfunding campaign, bringing the total amount raised in the round to £4.2m.