Endowus Secures $35M SGD in New Funding

Endowus Secures Additional Funding for Expansion

Endowus, a prominent investment application operating in Southeast Asia, has successfully obtained a further round of funding amounting to $35 million SGD, equivalent to approximately $25.6 million USD. This investment will bolster the company’s financial resources.

The funding round was spearheaded by Prosus Ventures, the venture capital arm largely controlled by Naspers, alongside EDBI. Z Holdings, a Japanese technology conglomerate owned by SoftBank Corp., also participated in the investment.

Existing Investors Reaffirm Confidence

Several previous investors also contributed to this funding round, demonstrating continued faith in Endowus’s potential. These include UBS, Singtel Innov8, and Lightspeed Venture Partners.

Just seven months prior, Endowus completed a $23 million SGD Series A funding round, which was led by Lightspeed Venture Partners and SoftBank Ventures Asia. This latest injection of capital elevates Endowus’s total funding to $67 million SGD, or roughly $49 million USD.

Growing Demand for Retail Investment Fuels Funding

Endowus joins a growing number of investment apps in Southeast Asia that are rapidly securing follow-on funding. This trend reflects the increasing interest in retail investing across the region.

Comparable companies include Pintu, Syfe, and Ajaib, all based in Indonesia, as well as Stashaway, which is located in Singapore.

Strategic Investment to Accelerate Growth

According to Gregory Van, co-founder and CEO of Endowus, the company sought additional funding due to interest from strategic investors. These investors shared a vision for accelerating Endowus’s growth and expanding its reach to help more individuals achieve their financial objectives.

Van stated that the company has demonstrated a strong product-market fit in Singapore, evidenced by over $1 billion SGD in asset growth during 2021 alone. He characterized the current funding round as falling “between a Series A and B” for Endowus.

He further explained that Endowus was initially 100% employee-owned and incubated, resulting in a slightly unconventional funding timeline.

Unique Position in the Singaporean Market

Launched less than two years ago, Endowus currently manages $1.5 billion SGD in assets under advice. The company distinguishes itself as the sole digital advisor in Singapore offering users the ability to manage both private cash and pension savings.

Endowus also provides access to advice from qualified financial experts. Notably, it is the only robo-advisor in Singapore capable of providing guidance and facilitating investments within the national pension savings system, the Central Provident Fund.

Van highlighted the significance of the Central Provident Fund, stating it represents a key wealth pillar for Singaporeans, with mandatory contribution rates reaching up to 37%.

Future Plans: Expansion and Product Development

The newly acquired funding will be allocated towards accelerating Endowus’s expansion within Singapore, supporting geographic growth initiatives, and enhancing product development.

The company has recently exceeded 100 employees and intends to double its workforce over the next year.

Van emphasized that while profitability could be achieved through cost reductions, the company prioritizes expanding its user base. The focus remains on enabling more individuals to utilize the Endowus digital wealth app to reach their financial goals, with profitability expected to follow as the company scales.

Comprehensive Investment Solutions

In addition to its Core and Satellite portfolios, Endowus empowers users to create customized investment solutions. The platform offers real-time advice and access to over 150 top-performing funds.

Users can potentially reduce annual investment costs by up to 50% through the elimination of sales fees and the provision of 100% trailer fee rebates.