British digital wealth management firm Nutmeg has deepened its loss by £2.8m, thereby marking its eighth consecutive year of loss.

Accounts published on Companies House revealed that the firm reported a loss of £21.2m in 2019, versus £18.4m in 2018.

According to Nutmeg CEO Neil Alexander, the trading loss reflected the firm’s investment to fuel growth.

On the bright side, the firm’s turnover improved to £9.2m from £7.1m over the period.

The firm’s assets under management at 2019-end was more than 40% higher compared to the prior year.

Client numbers also soared 30% year-on-year with the increasing adoption of digital channels amid the Covid-19 crisis.

Alexander noted: “Despite an increase in competition, Nutmeg remains the largest digital wealth manager in the UK with 36 per cent share of the digital wealth management market and has grown to be the fifth largest wealth manager in the UK.”

Developments at Nutmeg

Launched in 2011 as a fintech wealth management solution, Nutmeg diversified its offering with the introduction of personalised investment advice in 2018.

The robo-adviser is backed by several firms including Goldman Sachs that invested £45m in the firm to expand its offering.

Last March, Nutmeg announced that it is looking to raise as much as £10m via crowdfunding.

The latest accounts revealed that the firm raised £3.8m and brought 2,000 new investors.

Last year, Nutmeg also announced a partnership with Taipei Fubon Bank.

Under the agreement, Nutmeg will offer portfolio management services and advice on strategic asset allocation, investment strategy and ETF due diligence to Taipei Fubon Bank’s online wealth management product, Nano Investments.

Nutmeg also enabled its customers to top up their account through Apple Pay and Google Pay, becoming the first UK robo-adviser to do so.