Fidelity International and Polar Capital have helped raise another £35m for Moneybox, as losses across the digital wealth manager widen.
The Series D funding round, led by Fidelity International Strategic Ventures, a venture capital team at Fidelity, brings the total sum of funds raised to £95.1m. Existing investors also chipped in for the latest capital raise, with new investor Polar also coming on board.
Moneybox said that the funds will help build its brand and customer base, as well as introduce financial planning services and launch an investing proposition focused on long-term wealth generation.
The robo-adviser, which counts ex-Fidelity Special Situations manager Anthony Bolton as an early backer, has enjoyed explosive growth since launching in 2016. The platform currently supports over 800,000 customers and has more than £2.9bn in assets under administration
The robo-adviser saw revenue double to £5m in 2021, but has so far failed to turn a profit. It revealed a pre-tax loss of £9.9m in its latest set of annual results, a 40% jump from 2020’s £7m loss, which it said was down to higher spend on marketing, employees and product development.
Focus on ‘under-served’ mass market
Ben Stanway, co-founder of Moneybox, said: “Our mission is to help people build wealth with confidence so they can enjoy life today and tomorrow. This new round of investment enables us to create even better services to help our customers succeed across their home-buying, retirement, savings and investing missions.
“By continuing to focus on the large and under-served mass market we believe we are on a path to create the UK’s category-defining wealth platform. We celebrate this moment with deep gratitude for our amazing team, our loyal customers, and our supportive investors.”
Alokik Advani, managing partner at Fidelity International Strategic Ventures, added: “We were proud to lead the Series D funding round and this new investment is testament to the confidence of those closest to the Moneybox business.
“Since our first investment in the Series B funding round, we have been extremely pleased with the company’s execution, clear revenue model, product innovation, and diversification. Moneybox is at a significant inflection point in its journey and this next chapter of growth will see them introduce new unique investment solutions helping to support millions as they save for the future.”
This article first appeared on our sister publication International Adviser
