Goldman Sachs leads £45m investment in fintech start-up Nutmeg
Fintech start up and online wealth manager Nutmeg has raised £45million in funding from investors, including Goldman Sachs.
Nutmeg announced on Tuesday that it had raised the money from investors including Goldman Sachs’ Principal Strategic Investments arm as well as Hong-Kong listed financial advisory firm Convoy. The proceeds will be used mainly for international expansion.
The latest funding round values Nutmeg Saving and Investment Ltd at £245m, the company said.
Goldman’s investment in Nutmeg is occurring as financial institutions, especially traditional banks, spend millions of dollars to drive tech innovations in their banking operations and enhance their appeal to digitally-inclined consumers.
Banks like Goldman, JPMorgan Chase & Co, Wells Fargo & Co and mammoth wealth managers such as BlackRock Inc have been investing in robo-advisers to overhaul their distribution models in the face of tougher regulation, take some pressure off fees and cater to the changing investment needs of a younger generation.
Founded in 2011, Nutmeg manages customer investments and allows them to use a smartphone app and website to tailor their portfolio according to their desired risk level.
Rana Yared, a partner at Goldman Sachs who will be joining Nutmeg’s board, said: “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."