Endowus Secures $35M To Revolutionize Wealth Management

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A New Era for Southeast Asian Investment Apps

In 2021 and early 2022, the Southeast Asian investment app landscape witnessed a surge in venture capital interest. Among the frontrunners was Singapore’s Endowus, which successfully raised funds in two consecutive rounds: a Series A in June 2021 and a follow-on funding of $25.6 million just seven months later. Fast forward to today, Endowus announces another significant funding round, securing $35 million amidst a changing fintech funding environment.

Endowus’ Unique Proposition

Endowus stands out not just as a wealth management platform but also as a pioneer in integrating both private wealth and public pension. It holds the distinction of being the first digital advisor for Singapore’s Central Provident Fund Investment Scheme (CPF), managing over SGD $1 billion of pension assets.

A Holistic Approach to Wealth Management

Endowus’ vision encompasses serving clients throughout their financial journey, including retirement. Their platform offers a seamless digital process for investors, especially for CPF, and they aim to replicate this success with Hong Kong’s Mandatory Provident Fund (MPF).

Innovative Investment Strategies

Rather than functioning merely as a robo-advisor, Endowus collaborates with seasoned fund managers. Their goal is to make top-tier, institutional-share class funds accessible to retail investors. The platform is committed to transparency, rebating all trailer commission fees to its users through cashbacks.

Expanding Horizons with New Funding

The recent $35 million investment, backed by new investors like Citi Ventures and MUFG Innovation Partners, brings Endowus’ total funding to $95 million. The funds will be channeled towards scaling their services in key markets like Singapore and Hong Kong. With a current clientele of over 100K across these markets and assets under management exceeding $5 billion, Endowus is poised for further growth.

The Future of Wealthtech in Asia

Samuel Rhee, co-founder and chairman of Endowus, acknowledges the vast potential of the wealthtech sector in Asia, citing a McKinsey report that attributes at least 40% of global wealth to the Asia-Pacific region. However, he also anticipates increased consolidation in the sector, with smaller players potentially exiting the market due to lack of scale or innovation.

Endowus’ Resilience Amidst Funding Slowdown

Despite the general slowdown in fintech funding, Endowus experienced no challenges in securing investments, thanks to the confidence of its shareholders, which include industry giants like Citi Ventures, MUFG Innovation Partners, and UBS.

In conclusion, Endowus’ latest funding round solidifies its position as a leader in the wealthtech sector in Asia. With a commitment to innovation, transparency, and serving clients across all financial stages, Endowus is set to redefine wealth management in the region.

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