Today, we’re pleased to announce that we’ve raised £36 million in our Series C funding round, as we launch what is set to be the one of the largest digital wealth management partnerships in Europe.
This is a significant milestone for Moneyfarm as we roll out our digitally convenient and stress-free wealth management services to empower investors across Europe to build a more financially secure future.
Poste Italiane, an Italian postal and financial services firm, led the £36 million funding round. This coincides with the launch of the duo’s strategic partnership to integrate Moneyfarm’s unique blend of digital investment advice, human guidance and fully-managed portfolios with Poste’s digital platform.
This is a watershed moment in Moneyfarm’s partnership model, as we look to leverage our API capabilities in innovative partnerships across Europe, including the UK.
With nearly 35 million customers, Poste Italiane currently manages over €514 billion (£455 billion) through its traditional financial and insurance services. This puts the agreement with Moneyfarm on course to be the largest API-based digital wealth management partnership in Europe.
Allianz Asset Management also contributed to the Series C funding round, after expanding into the German wealth management market with Moneyfarm earlier this year. The pair developed a unique multi-asset product in an exclusive partnership.
Co-Founder and Chairman, Paolo Galvani said: “Since launching in the UK, Moneyfarm has gone from strength-to-strength and we have used this momentum as a springboard to deliver on our exciting and ambitious growth plans. A focus on our internal processes has helped speed up the pace and quality of innovation, allowing us to deliver even greater benefits to our customers and partners.
“Our unique partnerships with the traditional industry demonstrates the real value that can be created by combining the agility and passion of a fintech with the scale and experience of a traditional financial services player. After months of hard work, we’re in a strong position to utilise our API-based capabilities to deliver greater value for investors across Europe.
Moneyfarm goes from strength to strength
Following a positive funding round, we also announce a third successive year of strong revenue growth for the 2018 financial year. Turnover jumped 61% in the year to 31 December 2018, with group AUM growing over 80% year on year to £734 million.
Pre-tax losses narrowed by 6%, despite the group expanding across Europe, investing in its retirement planning solutions and global partnerships. A few months ago, we reported that we had nearly 40,000 customers across the UK, Italy and Germany – up 25% on a yearly basis, and a figure which continues to grow.
2018 was an important year for Moneyfarm, as we further cemented our position as a leading pan-European digital wealth manager.
The Moneyfarm Pension, the company’s self-invested personal pension, launched in March 2018. Over the last 12 months, the average value of a pension has increased over 80%, driving a 319% jump in assets managed in a pension wrapper.
Chief Executive Giovanni Daprà adds: “We continue to believe that redefining the relationship people have with their wealth manager, by combining human empathy with technology, is empowering investors across Europe to make confident investment decisions with simple investment solutions to build a more financially secure future.”