London-based digital wealth manager Nutmeg has raised £30m in the largest FinTech raise since Brexit.
The firm has now attracted a total of £59.4m investment over the last five years, having raised $32m (£25.6m) in 2014 and £3.4m in 2012.
This latest round was led by Convoy Global Holdings, Hong Kong’s largest listed independent financial advisory firm. Convoy put £24m into the round, which also featured existing backers including Schroders, Balderton Capital, Pentech Ventures, Armada Investment Group and Nigel Wray, the chairman of Saracens rugby club and well-known entrepreneur.
Nutmeg, which launched in 2012, provides portfolio management to people who want to invest anything from £500 upwards.
The firm currently manages more than £0.5bn for over 20,000 customers, with some 10,000 of these customers being acquired in 2016. It claims its portfolios have been delivering returns of between 6.5% and 47%.
Martin Stead, CEO of Nutmeg, said: “We are delighted to welcome our friends at Convoy to our board. Convoy shares our huge ambition for the Nutmeg business and, with these new funds, we will be able to further scale and expand our business, bringing smart online investing and advice to more people.”
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“Disrupting an exclusive industry was always going to be a tough challenge, but it is one that we relish. Nutmeg is successfully enabling people from all walks of life to get their money working harder,” he added.
Chancellor of the Exchequer Philip Hammond has some positive words to share about the raise, too: “Britain is leading the way forward in global FinTech. It’s an industry that is going from strength to strength and today’s announcement confirms the UK’s position as the global FinTech capital. This is another international investment into a home-grown UK company, demonstrating the UK is open for business.”
Nutmeg is to use the new capital to expand its product offering, with a specific focus on new investment options, ‘tax wrappers’ and its advice service. An expansion into Asia is also on the cards.