September 29, 2023

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Singapore prosperity management platform Endowus raises $35M

Back in 2021 and early 2022, there was a flurry of VC interest in Southeast Asian expense applications. 1 of them was Singapore-primarily based Endowus, which lifted two rounds in quick succession: a Collection A in June 2021 adopted just seven months afterwards by $25.6 million in adhere to-on funding. Now two many years later on, despite a significantly distinctive funding ecosystem, specially for fintech startups, Endowus is asserting one more spherical.

This time it is $35 million with new buyers, which includes Citi Ventures and MUFG Innovation Companions, bringing the company’s whole raised so considerably to $95 million. Individuals also include “four of Asia’s wealthiest people,” the startup stated in its press launch, whose operating firms encompass banking and real estate throughout Southeast Asia and China. Returning traders include notable firms like UBS Future, Singapore’s EDBI, Prosus Ventures (owned by Naspers), Lightspeed Venture Partners, Singtel Innov8 and Endowus workforce.

The new funding will be employed to scale in its primary marketplaces of Singapore and Hong Kong, wherever it at present serves about 100K customers in both equally markets. As a group, Endowus now has in excess of $5 billion in property underneath management and $40 million in discounts for its customers.

Inspite of macroeconomic difficulties, Endowus explained it saw organic and natural earnings development of 80% in 2022 and tripled its team revenue soon after finishing the acquisition of multi-family workplace Carret Private. Because TechCrunch last covered Endowus, it has released a lot more expert services like low expense passive index funds in Singapore and Endowus Private Wealth for higher-internet-truly worth persons. It also started off products and services in Hong Kong this 12 months as what it describes as the “only impartial, fee-free of charge and conflict-totally free digital wealth advisor and small value fund platform.”

Co-founder and chairman Samuel Rhee instructed TechCrunch that Endowus is now “multiple periods the size of the future player and now competing with large financial institutions and incumbent gamers.”

Other financial commitment apps in Singapore include Syfe and Stashaway, which also attracted huge VC bucks a few many years in the past.

One particular of the most important ways Endowus differentiates is remaining what it suggests is the only electronic wealth system that serves both equally private wealth and community pension as the to start with electronic advisor for Singapore’s Central Provident Fund Financial investment Scheme (CPF).

Endowus manages far more than SGD $1 billion of pension assets on its platform. Rhee stated 1 of the factors Endowus handles pension money as effectively as individual prosperity is to serve consumers at all stages of their monetary life, which includes retirement.

For CPF, it built in-house a tech stack that results in a absolutely-automated digital system for buyers. Endowus plans to replicate its CPF work with Hong Kong’s Necessary Provident Fund (MPF). Instead of being a robo-advisor, Rhee explained Endowus uses fund professionals with verified keep track of records to make prime-undertaking, institutional-share class money for retail investors more accessible.

Endowus monetizes only through advisory charges, and Rhee suggests it is the very first and most significant system in Singapore and Hong Kong to offer a 100% rebate of all trailer fee service fees, compensated via cashbacks.

When asked if there is a chance of consolidation between expenditure application gamers, Rhee said “the chance for wealthtech gamers continues to be outsized,” pointing to a McKinsey report that displays the Asia-Pacific location now accounts for at the very least 40%, or $218 trillion, of whole worldwide wealth.

But he additional that “we do foresee increased consolidation in foreseeable future as wealthtechs in Singapore and in Asia mature, and people that deficiency scale or technological innovation or a moat all over the small business will put up with, as we have witnessed in the current downturn. We may well see some players exit the current market, and lesser gamers closing down.”

As for how Endowus fared all through the slowdown in fintech funding (and funding in typical), Rhee reported the enterprise had no difficulties securing fundraising from its investors.

“We are also lucky to have some of the biggest buyers as our shareholders,” he included, like Citi Ventures, MUFG Innovation Partners and UBS.