Singapore-based digital wealth advisor StashAway has secured $5.3 million in Series A funding round from a group of existing and new investors, including family offices, the company said in a statement on Thursday.
StashAway said it will use the fresh funds to develop and enhance its investment service and technology. It will also launch StashAway into new markets overseas.
“Interest and users of digital investment platforms have proliferated over the past 12 months, and StashAway has spotted opportunities in additional markets globally,” the company said.
Founded by Michele Ferrario, Freddy Lim, and Nino Ulsamer in 2016, StashAway positions itself as an alternative to traditional financial advisors. It operates on a monthly subscription model, using a robot advisor to aid clients in making investment decisions without the need for a consultant.
“Our investors have a deep understanding of the wealth management market, and share our vision for how technology can deliver an improved and more cost-efficient approach to investing. We’re excited to take this approach to new markets,” said Michele Ferrario, CEO and co-founder of StashAway
The funding round followed StashAway’s $2.15-million pre-Series A round led by the family of Singapore-based Francis Rozario, the founding chairman and CEO of Asia Capital and Advisors. The Rozario family also participated in the latest Series A funding round.
The pre-Series A round last year gave StashAway sufficient funds to be eligible for a retail fund management license from the Monetary Authority of Singapore (MAS), which requires firms to possess a minimum capital amount of S$1 million.
To date, the business has raised S$11.1 million ($8.4 million) across three funding rounds.
Robo-advisers have been growing in popularity in Singapore, with OCBC Bank among the first to launch robo-advisory services.
According to a CB Insights report released last year, the most well-funded robo-advisor in the world is US-based Personal Capital, which has raised over $200 million in funding, while the most well-funded non-US company is China-based Wacai, which has raised $186.6 million.
Singapore, despite its size, accounts for only 3 per cent of global deal share when it comes to robo-advisors, according to the report.