Nutmeg sells stake to Goldman Sachs in £45m funding round

Nutmeg has secured £45m in the latest funding round led by Goldman Sachs and Convoy in the biggest robo-adviser funding round in Europe. The company will use the backing for its expansion to international market this year.

Nutmeg has received £116 million in investment since launch.

The company said the funding would be used for further product innovation and new features, but also investing in people and technology to enable partnerships for accelerated expansion in the UK and beyond.

Despite being the biggest Europe’s robo-adviser, Nutmeg reported £12.4m loses for 2017, a £9.4m from the year before.

The funding comes from the Goldman Sachs’ Principal Strategic Investments group. which invests in “fast-growing technology companies that are uniquely positioned to benefit from a deeper business relationship with Goldman Sachs.”

Can Nutmeg conquer advice?

Existing investor Convoy, the Hong Kong-based financial advisory firm, co-led the round as it looks to enhance the strategic partnership between the two firms ahead of expansion in Asia.

Nutmeg chief executive Martin Stead said the moment marked “Nutmeg’s transition from start-up to scale-up.”

Stead says: “We look forward to Goldman Sachs’ support and to exploring commercial collaboration opportunities that further accelerate our growth plans.”

“This funding also enables us to expand internationally, with our plug-and-play B2B expansion model, which leverages both our technology and investment capabilities, developed in this highly respected FCA-regulated market.

“We plan to launch with existing partners Convoy in Hong Kong this year.”

Convoy head of venture capital Michael Yap says: “We welcome the addition of Goldman Sachs as a Nutmeg shareholder.”

Last fall, Nutmeg introduced a personal financial advice service. It also as a first UK robo-adviser launched environmental, social and governance ratings for its entire portfolio range and 10 risk-based socially responsible portfolios late last year.

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