With the increase of businesses using technology, the digital wealth manager plans to expand further after receiving massive funding in its series B round
Fintech startups continue to rise to prominence despite being plagued with high competition, strict regulations and intense pressure to cater to customers’ need. Staying on top of the game and ensuring to involve the latest technology with integrated artificial intelligence features are only few of the prerequisites to be considered for investors. Fortunately, these challenges have not prevented Moneyfarm, the digital wealth management startup, to raise £40m in a new series B funding round.
Spearheading the round, Allianz Asset Management, the investment arm of global insurer Allianz has also invested in Moneyfarm’s series A round back in 2016. Nevertheless the round also saw two new investors bet their money on the fintech startup’s continuous success: Endeavor Catalystm, the VC firm, and Fondazione di Sardegna, the Italian finance firm. The existing investors and ditto VC firms United Ventures and Cabot Square Capital also joined the round.
And it’s safe to say Moneyfarm has big plans for the cash. The company has already doubled its assets under management to £400m by approaching the retail market. Along with investment advice, Moneyfarm also provides a cost effective investment proposition. With this latest influx of capital, the startup plans to scale by launching more personalised and innovative solutions and the expansion of its investment strategy.
Commenting on the round, Giovanni Daprà, CEO and co-founder of Moneyfarm, said: “We firmly believe that efficient investment management has to be coupled with clear investment advice to achieve the best outcome for our customers over the long term. This is where we see the real value added from digital investments.
“This capital will help bolster our product and investment advice offering as we explore integrating Goal-Based Investments. We look to expand our customer base through a focus on greater personalisation of the investment advice we give to help support and guide customers along their wealth journey.”
But the startup better move quickly. With competitors such as Scalable, Nutmeg and Wealthify, it’s anyone’s guess whether it’s Moneyfarm or someone else who will persuade companies to trust them with their money and come out on top of the competition.