UK-based digital wealth management technology developer Nutmeg raised £30m ($37.2m) yesterday in a funding round led by financial advisory firm Convoy.
Venture capital firm Balderton Capital and asset manager Schroders also took part in the round. Convoy’s commitment was made as part of a strategic partnership that will provide Nutmeg with access to the corporate’s expertise.
Founded in 2011, Nutmeg provides an online wealth management platform that enables consumers to invest in a stock-based instant savings account (ISA) or in a pension fund. Users can select risk based on a sliding scale and invest from £500 for an ISA or £5,000 for a pension.
The capital will be used to accelerate Nutmeg’s growth and expand its product range. The company claims a customer base of more than 20,000 people and has more than £500m under management.
Nutmeg has now received a total of $73.8m in funding. Its other investors include Draper Associates, Pentech and angel investors such as Charles Dunstone, founder of mobile phone retailer Carphone Warehouse, and Klaus Hommels, a board member at music streaming service Spotify.
Law firm Taylor Wessing advised Nutmeg on the transaction, having acted in that capacity since the company’s incorporation.
Martin Stead, chief executive of Nutmeg, said: “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.”