Endowus raised US$35mil from global banks, existing investors, and four Asian billionaire families
By Digital News Asia August 10, 2023
- Group assets are now worth over US$5bil
- Managing over US$741 mil of pension assets in Singapore
In its latest funding round, Endowus, which claims to be Asia's leading digital wealth platform, has raised US$35 million (RM160.46 million). New investors include Citi Ventures, MUFG Innovation Partners, and four of Asia's wealthiest families with various operating businesses spanning banking to real estate across Singapore, Southeast Asia, and Greater China, including Hong Kong. Existing investors participating in this round include UBS Next, Singapore's EDBI, Prosus Ventures owned by Naspers, Lightspeed Venture Partners, Singtel Innov8, and Endowus employees.
The successful fundraiser comes amidst a global fintech growth and funding slowdown. Endowus has continued to experience accelerated growth, with group assets now crossing US$5 billion (RM22.92 billion). In 2022, the firm claims it delivered revenue growth of 80% organically while tripling its group revenue as it completed the acquisition of one of Asia's premier multi-family offices, Carret Private. It has continued to grow in the downturn, achieving peak assets and revenue every quarter throughout its history, including a record-breaking 2Q 2023.
Endowus is the only digital wealth platform to serve both private wealth and public pension as the first digital advisor for Singapore's CPF-IS (Central Provident Fund Investment Scheme) and announced it had crossed a meaningful milestone of over US$741.72 million (SG$1 billion) of pension assets managed through its platform in Singapore.
Endowus has also continually expanded its service offerings, including the launch of the lowest-cost passive index funds in Singapore and CPF, as well as the launch of Endowus Private Wealth for high-net-worth clients, actively democratising access to the private market, hedge fund, and alternative investment solutions. Additionally, the firm launched its services in Hong Kong this year as the only independent, commission-free, and conflict-free digital wealth advisor and low-cost fund platform.
Samuel Rhee (pic), co-founder and Chairman of Endowus, said, "This successful fundraising at a critical time in the growth of the company is a validation of what we have built so far and demonstrates the strong belief in the team's ability to execute in building the digital wealth platform of the future. Endowus is today one of the largest independent wealth managers and the fastest-growing digital wealth platform in Asia. It continues to pioneer the digitalisation of personal savings, private wealth, and public pension with an unwavering belief in our vision of solving the biggest problems of an individual's future needs, such as retirement adequacy. We are ready to embark on the next growth stage, targeting exciting new opportunities to propel Endowus into the dominant position in the digital wealth space across Asia."
"Today's investors seek tailored, data-driven, and digital-first solutions to meet their lifestyles and long-term wealth needs. With its strong tech and product innovation, the Endowus team has built a top-tier digital total wealth platform and has laid the groundwork for continued success in the future. We are excited to support their next growth phase, leveraging Citi's tremendous experience and expertise in the global wealth business," said Everett Leonidas, Asia-Pacific Head of Citi Ventures.
This latest investment underscores Endowus' wealthtech leadership and its success in building a sustainable business to tap into the region's rapidly expanding, multi-trillion-dollar wealth market opportunity. Endowus will use the new funds to continue scaling and dominate its core markets of Singapore and Hong Kong to bring fee-only, conflict-free wealth management to a broader segment with greater penetration.
"The next stage of Endowus' growth will hone in on personalising a joyful and meaningful investing experience for all investors at scale. As Asia looks to become the biggest global wealth market, embracing technology and artificial intelligence is critical in providing clients with consistent, transparent, better, and more efficient advice at scale. Endowus remains resolute in helping everyone take control of their wealth goals and achieve better outcomes by systematically fixing misaligned incentives and lack of transparency as a true fiduciary and fee-only advisor. Doing this right will result in a sustainable and generational business that will have a far-reaching socio-economic impact on the lives of our clients and society," said Gregory Van (pic), co-founder and CEO of Endowus.
"Endowus' commitment to empowering individuals in their wealth journeys aligns strategically with MUFG's vision of promoting greater financial inclusion across Asia, where MUFG has a strong business footprint. Their unique fee-only, digital-first business model is an industry best practice that lowers the cost of investing for many while delivering institutional-grade solutions to the retail investor," said Takashi Sano, Chief Investment Officer of MUFG Innovation Partners.
Endowus was recently named a World Economic Forum Technology Pioneer, earning global recognition for being at the forefront of new technologies and innovation, poised to impact business and society significantly. Endowus also clinched Singapore's Best Digital Wealth Management at The Asset Triple A Digital Awards 2023 and Asia Asset Management's Best of the Best Awards 2023.
Headquartered in Singapore, Endowus is the region's first digital advisor to span private wealth and public pension savings. Apart from goals-based investing into automated portfolios professionally curated by Endowus' Investment Office, clients can also build single and multi-funds portfolios via the Fund Smart solution, where over 300 curated strategies by over 50 global fund managers are accessible at low cost across major asset classes including cash & money market, fixed income, equity, multi-asset and commodities. Endowus Private Wealth clients can also access hedge funds, private equity, private credit, private real estate and other alternatives at comparatively lower minimums, fees, and liquidity.