Nutmeg, the U.K. digital wealth manager (and an early entrant into the space), has picked up £30 million in further funding, bringing the total raised to just shy of £60 million over the last 5 years.
Leading the round are Hong Kong-based independent financial advisory firm Convoy, which is investing £24 million. Nutmeg’s existing backers — including Schroders, Balderton Capital, Pentech, Armada Investment Group, and Nigel Wray — also participated.
One of a plethora of “digital wealth managers,” Nutmeg offers investment portfolio management to let you invest from as little as £500. These can be for things like ISAs (a tax-free savings account in the U.K.), pensions or anything you wish to save for.
Its friendly UI lets you set a savings target, perhaps tied to a specific goal (in my case, to buy a new car, one far away day) and also set a level of risk. The latter then determines how Nutmeg invests and diversifies on your behalf, updating its investment strategy each month.
Nutmeg says it’s grown significantly since launch in 2012 and currently manages more than half a billion pounds for a growing base of over 20,000 customers. It last fund-raised in June 2014.
Meanwhile, the new capital will be used to expand Nutmeg’s product offering and to further scale the business. This will include offering new investing options, new tax wrappers and further developing the advice element of the service. Convoy’s investment in Nutmeg is also described as “strategic” and the startup says it opens the door to expansion into Asia.
Nutmeg’s Martin Stead, who replaced co-founder Nick Hungerford as CEO in May, commented: “This investment cements our position as Europe’s leading digital wealth manager. 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”.