European digital wealth manager Moneyfarm has raised £36m in Series C funding from Allianz Asset Management and Italian postal service, Poste Italiane.
Moneyfarm’s robo-advisory service and human support will be integrated into the digital platform of Poste Italiane catering for their nearly 35 million customers.
A statement from Moneyfarm describes this as an “important milestone”, as it seeks expansion through partnerships with firms looking to leverage its API capabilities.
Its partnership with Allianz goes back to 2016, when the insurance firm backed Moneyfarm with a $7m investment, which brought the wealth manager into the German market.
This may offer the scalability needed for digital wealth managers like Moneyfarm and Nutmeg to return a profit, something that has remained elusive despite their increasing prevalence in the mass market, Moneyfarm announcing losses of £14 million in 2017 last August.
Funding has provided strong revenue growth for three consecutive years, Moneyfarm announces, with turnover increasing 61% in the year ending December 31st 2018. Pre-tax losses have also diminished by 6%.
“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,” says co-founder, Paolo Galvani.
“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 now has nearly 40,000 customers across the UK, its native Italy, and Germany, and is one of the most prominent players in the growing robo-advisory market in Europe, along with Nutmeg and Wealthify.