Endowus, a Singapore-based licensed wealth advisor backed by SBVA (formerly SoftBank Ventures Asia) has announced raising an additional $17.5 million in its latest funding round.
The fresh investment, which brings the total raised in this round to $52.5 million, was led by existing investors Prosus Ventures, UBS, and MUFG. OSK Ventures New and Asia Companion Fund also participated, per the announcement.
In 2023, Endowus raised $35 million in a funding round backed by Citigroup’s venture capital unit, Citi Ventures; and MUFG Innovation Partners and backed by four of Asia’s billionaire families.
Endowus said it will use the fresh funds to continue the expansion of its services across Asia’s major wealth hubs of Singapore and Hong Kong. It will also invest in talent and technologies, among others.
“Our responsibility is to continuously evolve and grow to deliver value to all stakeholders,” said Endowus co-founder and chairman Samuel Rhee.
Endowus, founded in 2017, is led by Gregory Van and Rhee, former investment bankers and fund managers from Morgan Stanley Asset Management and UBS. The platform helps investors with expert advice and access to institutional financial solutions for a fee.
Endowus launched its digital wealth management services in Hong Kong in April 2022, allowing investors to build single- and multi-fund portfolios via the Endowus Fund Smart solution. Hong Kong is Endowus’s first overseas expansion market after Singapore.
The Endowus Group comprises Endowus’s licensed companies — Endowus HK Limited, Endowus India Private Limited, Endowus Singapore, and multi-family office Carret Private.
The group reported a wider net loss for the financial year 2023, even as the company’s revenue more than doubled, according to regulatory filings.
Endowus, a Monetary Authority of Singapore-licensed wealth advisor, reported an overall revenue of S$19.8 million ($15.4 million) in the year ended December 31, 2023, marking a 2.4x increase from S$8.3 million ($6.6 million) in 2022.
The group’s filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) also show that its gross profit nearly tripled to S$16.8 million ($13.1 million) in 2023 from S$6.6 million ($5.1 million) a year earlier.
The group’s revenue growth was driven by significant gains across multiple income streams, the filings showed.
Financial advisory services revenue rose to S$9.4 million ($7.3 million) from S$6.1 million ($4.8 million) a year earlier, while retrocession fees increased to S$6.5 million ($5.1 million) from S$1.2 million ($1 million) in 2022.
Fund management fees climbed to S$3.1 million ($2.4 million) from S$0.7 million ($0.5 million), and consultancy fees grew to S$0.8 million ($0.6 million) from S$0.28 million ($0.22 million).
