Leading digital wealth platform Endowus adds S$35 million in funding to accelerate growth with new strategic partners
New investors Prosus Ventures, Singapore-based global investor EDBI, Z Venture Capital – which owns the LINE messaging app, join returning investors UBS, Singtel Innov8 and Lightspeed Venture Partners, in accelerating Endowus’ growth in Singapore and across Asia
Singapore, 30 November 2021
Singapore’s leading digital wealth app Endowus announced today it has raised an additional S$35 million (US$27 million) to accelerate its growth in Singapore and across Asia to make expert wealth management accessible, affordable and convenient to everyone. This brings the company’s total funding this year to S$67 million (US$50 million).
- The round is co-led by Prosus Ventures, the venture investing arm of Netherlands-listed Prosus which is majority-owned by Naspers (the largest shareholder of Tencent), and Singapore-based global investor EDBI. Endowus is EDBI’s first investment in the WealthTech sector and this is testament to Endowus’ continued leadership in digital wealth management in Asia, as well as Singapore’s thriving fintech scene.
- Z Venture Capital, the Japan-based technology conglomerate that owns the LINE messaging app and is owned by SoftBank Corp. of Japan and Naver of Korea, will also participate in the round. Returning investors include UBS, the world’s largest wealth management bank, Singtel Innov8, and Lightspeed Venture Partners.
- Employees of Endowus, who remain the largest shareholders of the company, added to their investments together with new investors, who are clients of Endowus, K3 Ventures (founded by Kuok Meng Xiong and early investors in Grab and Bytedance) and Wee Teng Wen (Founder & CEO of The Lo & Behold Group, a leading Singapore lifestyle and F&B group) among them.
Endowus is the only digital advisor in Asia that has heavily invested in the technology that enables end-to-end investing of both private wealth and public pension assets, including in Singapore all cash savings, the Central Provident Fund (CPF) and Supplementary Retirement Scheme (SRS), which are all integrated for the convenience of the user on a single easy-to-use app. The Endowus platform provides savings, wealth and retirement solutions, allowing individuals to invest holistically, conveniently and with expert advice at a low and fair cost.
The company has experienced significant customer adoption and scaled into one of the largest digital wealth service providers in Asia, with total assets under advice meaningfully surpassing S$1.5 billion, less than two years after its full service launch.
“We are excited to strengthen our investor base with new and returning investors who believe in the long-term, strategic vision of building a digital wealth platform aligned to the best interests of clients and their success. But more importantly, each investor will uniquely contribute to shape the future growth of Endowus. The permanent capital they bring will help us to stay focused on our long-term aim of solving the meaningful pain points consumers face when managing their money, including retirement”, said Endowus co-founder and Chairman, Samuel Rhee.
The investment by Prosus Ventures and EDBI, who are co-leading the round, as well as Z Venture Capital adds to the roster of existing investors Softbank Ventures Asia, Lightspeed Global Ventures, UBS, Singtel Innov8, and Samsung. This growing list of strategic partners bolsters Endowus’ key growth initiatives, including geographic expansion, roll-out of new product offerings, and further development of its technology platform to enhance client experience. The company also plans to boost its human capital by doubling headcount across core functions and strengthen its technology and talent, to lean into its advantages as a technological and financial expert leader in wealth management.
“The new investments are a validation of our achievements in establishing Endowus as a leading digital wealth platform in Singapore. We will double down on our unique and differentiated long-term strategy and fee-only business model to continue to win the confidence and trust of our clients, without whom we would not exist. We will continue to transform the wealth industry by strengthening the key building blocks of long-term investment success – advice, access and cost – so that our clients can live easier today and better tomorrow”, said Endowus co-founder and CEO Gregory Van.
“Investing and wealth management is traditionally complex, expensive and not accessible for a lot of consumers,” said Sachin Bhanot, Head of Southeast Asia Investments for Prosus Ventures. “Endowus has built a next-generation wealth platform that is democratising financial access while offering best-in-class products that cater to all types of wealth needs. The company has already experienced impressive growth and is well-positioned to scale further in Singapore and across Asia.”
Ms Chu Swee Yeok, CEO and President of EDBI, said: “Our goal is to make strategic investments in companies which are at the forefront of innovation and disruption, especially home-grown leaders such as Endowus. The company is primed to capture strong growth opportunities in Asia’s burgeoning Wealthtech sector, and EDBI is pleased to partner and support Endowus as it continues to strengthen Singapore’s position as the wealth and financial service center and the fintech capital of the region.”
In March 2021, Endowus launched multi-asset, multi-manager environmental, social and governance (ESG) portfolios for retail investors, a first in Asia, facilitating advice and access to solutions previously reserved for institutional or private banking clients.
In September 2021, Endowus made major enhancements to its fee-only fund platform, Fund Smart, further lowering costs for Singapore-based investors, and providing access to over 100 best-in-class unit trusts at just 0.3% per annum, with no sales charges and 100% trailer fee rebates, achieving the lowest possible all-in cost for the majority of the funds available on the platform.
In November 2021, Endowus launched six new satellite portfolios – Technology, Megatrends, Global Real Estate, China Equities, China Fixed Income and Low Volatility Fixed Income, to supplement its Core portfolios in Flagship and ESG portfolios, to meet the needs of its clients for specifi. These advised portfolios are curated and constructed using best-in-class funds by the Endowus Investment Office to make institutional-quality investing available for all retail and accredited investors at low cost.