British fintech startup Nutmeg just completed a £45m investment round, including backing from Goldman Sachs, according to the Telegraph.
The outlet reports that Nutmeg recently raised “money from investors including Goldman Sachs’ Principal Strategic Investments arm as well as Hong-Kong listed financial advisory firm Convoy.”
Automated investing app maker Nutmeg says the influx of cash awaits approval from the Financial Conduct Authority. Plans for the funding include international expansion.
“Nutmeg has already established itself as one of the fastest growing wealth managers in the UK. We are excited to fuel further growth and innovation through our investment and to support management in their vision of leveraging technology to broaden access to world-class investment solutions.”
“Nutmeg has already established itself as one of the fastest growing wealth managers in the UK,” said Rana Yared, a partner at Goldman Sachs and latest addition to Nutmeg’s board.
“We are excited to fuel further growth and innovation through our investment and to support management in their vision of leveraging technology to broaden access to world-class investment solutions.”
Nutmeg’s founder, Nick Hungerford, served as CEO until 2016, when Martin Stead assumed the position following his tenure at EDF as the marketing, sales & digital director, says the Telegraph.
The company cites increased regulation and internal investments as the reason for recent losses that totalled over £12m in Nutmeg’s most recent accounts.
Digital wealth management is an increasingly crowded space in the U.K. including upstarts such as London-based Plum as well as Monzo and Revolut.
Speaking to the Telegraph last fall, Monzo CEO Tom Blomfield described the potential of investment products as a category.
“If you are buying stocks and shares and you want a tracker, does it make sense to embed Nutmeg? Or does it make sense to simply allow people to buy the BlackRock ETF that's behind Nutmeg? It's the same ETF you're getting anyway,” Blomfield said.