Back again in 2021 and early 2022, there was a flurry of VC desire in Southeast Asian investment applications. A person of them was Singapore-based Endowus, which lifted two rounds in fast succession: a Series A in June 2021 followed just seven months later by $25.6 million in comply with-on funding. Now two several years later, in spite of a much diverse funding environment, specially for fintech startups, Endowus is saying an additional spherical.
This time it’s $35 million with new traders, including Citi Ventures and MUFG Innovation Partners, bringing the company’s whole elevated so far to $95 million. Participants also include things like “four of Asia’s wealthiest households,” the startup mentioned in its push launch, whose operating businesses encompass banking and actual estate throughout Southeast Asia and China. Returning traders involve noteworthy corporations like UBS Subsequent, Singapore’s EDBI, Prosus Ventures (owned by Naspers), Lightspeed Venture Companions, Singtel Innov8 and Endowus workers.
The new funding will be applied to scale in its principal marketplaces of Singapore and Hong Kong, where it now serves above 100K consumers in both of those marketplaces. As a group, Endowus now has more than $5 billion in belongings below management and $40 million in discounts for its clients.
Despite macroeconomic troubles, Endowus stated it noticed organic revenue expansion of 80% in 2022 and tripled its group income following finishing the acquisition of multi-relatives business office Carret Non-public. Given that TechCrunch previous lined Endowus, it has launched far more products and services like reduced charge passive index resources in Singapore and Endowus Non-public Prosperity for substantial-internet-value individuals. It also started off providers in Hong Kong this year as what it describes as the “only impartial, fee-no cost and conflict-free of charge electronic wealth advisor and very low value fund system.”
Co-founder and chairman Samuel Rhee informed TechCrunch that Endowus is now “multiple instances the sizing of the upcoming player and now competing with massive banks and incumbent gamers.”
Other financial commitment apps in Singapore involve Syfe and Stashaway, which also attracted massive VC bucks a pair yrs ago.
A single of the principal means Endowus differentiates is getting what it says is the only digital wealth platform that serves equally private wealth and community pension as the to start with digital advisor for Singapore’s Central Provident Fund Financial commitment Scheme (CPF).
Endowus manages extra than SGD $1 billion of pension property on its platform. Rhee stated one particular of the reasons Endowus addresses pension funds as properly as personalized prosperity is to serve shoppers at all levels of their fiscal lives, which includes retirement.
For CPF, it designed in-household a tech stack that makes a fully-automated electronic procedure for investors. Endowus plans to replicate its CPF operate with Hong Kong’s Necessary Provident Fund (MPF). Alternatively of being a robo-advisor, Rhee mentioned Endowus employs fund professionals with verified keep track of records to make major-accomplishing, institutional-share class money for retail traders much more accessible.
Endowus monetizes only through advisory charges, and Rhee states it is the initially and greatest system in Singapore and Hong Kong to supply a 100% rebate of all trailer fee expenses, compensated through cashbacks.
When requested if there is a risk of consolidation between financial investment application gamers, Rhee claimed “the option for wealthtech players continues to be outsized,” pointing to a McKinsey report that exhibits the Asia-Pacific location now accounts for at least 40%, or $218 trillion, of full worldwide prosperity.
But he additional that “we do foresee improved consolidation in long term as wealthtechs in Singapore and in Asia experienced, and these that absence scale or technological innovation or a moat all-around the business will experience, as we have observed in the new downturn. We may perhaps see some players exit the market place, and lesser gamers closing down.”
As for how Endowus fared during the slowdown in fintech funding (and funding in normal), Rhee stated the organization had no challenges securing fundraising from its traders.
“We are also lucky to have some of the most significant traders as our shareholders,” he additional, like Citi Ventures, MUFG Innovation Companions and UBS.